Greater Charlotte Biz 2015.11-12 November-December 2015

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How Can We Make Health Care More Aff ordable?2016 marks the third year of the Aff ordable Care Act and employers, consumers and insurers alike are concerned that the “aff ordable” component of the health care reform legislation is proving elusive. North Carolina consumers who buy their own health insur-ance are facing major price increases this upcoming year because of higher utilization rates, rising drug costs, and increased emergency room visits. BCBSNC, the state’s only insurer with products available in all 100 counties has raised rates by an average of 32.5%.

The Sustained Capture of MemoryHenry Mummaw and Greg Robey are the founders of MemoryMemo, an integrated software platform designed to capture and preserve audio and text in a digital .memo fi le for photos, and LifeLens Imaging, a process for preserving and enhancing photographs digitally. “These are solutions to a signifi cant problem—the sustained capture of memory,” says Mummaw. “We want them to be perceived as a solution whose time has come.”

Saving Lives with a Simple FormulaThis dense mixture of peanut butter paste, vitamins, milk, oil, and sugar comes in a small squeezable packet about the size of an iPhone. Administered three times per day for six weeks, it can rescue a young child from the nutritional cliff which is poised to take his or her life. Called RUTF, ready-to-use therapeutic food, MANA Nutrition manufactures and distributes this product under the leadership of founder and CEO Mark Moore.

Creating and Selling Brands People WantThe beverage industry is tough,” says Norman George of BYB Brands. “I’ve been in it more than 30 years and I continue to marvel at what works and what does not.” Over the years, George’s team built and launched a multitude of beverages including Country Breeze and Bazza Teas, Bean and Body coff ee, Fuel in a Bottle, and Tum-E Yummies. Of these, only Tum-E Yummies remains in the marketplace, a No. 1 seller and growing in reach.

Empowering People, Powering Success“In corporate America, there is no more security,” says Jason Heller. “People know they don’t work anywhere for 20 years any longer. Every job is temporary. The whole dynamic has shifted.” He and the other principals of CRG, a recruiting and consulting services company, believe in treating people “like gold.” Affi rms Tim Sessoms, “We want to make sure we are diff erent. We say, ‘Treat them the way you want to be treated.’”

Working on the Chain Gang: Supply Chain Finance as the New Normal

Going Global: Providence Day at Forefront of Global Eucation

Meet our New Neighbors: Chinese Foreign Direct Investment in the U.S?

24/7 Painless Networking using LinkedIn Groups: Targeting Exactly Who to Meet

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november/december 2015 | greatercharlottebiz.com

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OF INTEREST: Insightful Solutions Perfectly Matched to Your Corporate DNA

Conaway

Adjusting to the “new reality,” many companies have fo-cused on all aspects of their balance sheets to improve per-formance for stakeholders. Companies have realized that material extensions of credit terms regarding accounts

payable result in dramatic improvement to cash flow and working cap-ital. Changing terms from 30 days to 75 days, for example, not only frees up cash for working capital, it also reduces the need for bank-fi-nanced working capital, which is more expensive than “borrowing” from suppliers.

To make the extension of payment terms more appealing to suppliers, buy-ers have partnered with their lenders to offer a “supply chain finance” solution that allows suppliers to be paid timely if not early, despite the stated payment term extension, such that a supplier’s Days Sales Outstanding (DSO) is actual-ly reduced.

The Trade Credit Association of the United States reported that in the U.S. ap-proximately $20 trillion of annual sales are made on trade credit, resulting in $2.8 trillion of trade credit out-standing in the U.S. economy, which creates a substantial market op-portunity for banks to generate interest and fee income.

Lender’s PerspectiveSupply Chain Finance (SCF) is an opportunity for banks to gener-

ate interest and fee income, at a low cost and risk. Typically, SCF pro-grams are provided to a bank’s existing and best customers who pose little credit risk. The advances by the bank can be folded into an ex-isting credit facility, are short-term exposures, and are backed by an assignment or pledge of the customer’s obligation to pay its supplier.

Not only can the bank generate fee income from its borrower for providing the facility, the bank also makes a .5 percent or so spread on the invoice amount in 60 to 120 days, since the bank pays the sup-plier a discounted amount, and collects 100 percent from its borrower at invoice maturity.

Buyer’s PerspectiveFrom the Buyer’s perspective, the “new normal” economy has

resulted in more expensive and less accessible capital, demand for goods is not as brisk as before, customers are paying more slowly, and capital is tied up longer in inventory and slower moving accounts re-ceivable. Yet, companies remain under pressure from stakeholders to manage their balance sheets and cash to generate revenue.

For example, in April, 2013, The Wall Street Journal reported that Proctor & Gamble would extend payment terms of suppliers from 45 to 60 days to 100 days. Given Proctor & Gamble’s procurement spend of $50 billion annually, that would improve Proctor & Gamble’s cash

flow by $2 billion. By extending Days Payable Outstanding (DPO), a buyer not only improves cash, but reduces working capital costs and bank charges.

With low interest rates, the cost to the buyer for its bank to facili-tate an early payment option for suppliers is low, especially if it is an add-on to an existing credit facility.

Buyers should understand the impact on its suppliers as extend-ed payment terms can adversely impact the supplier’s revenue and perhaps overall financial health, heightened if interest rates increase.

Prudent buyers should monitor their supply chain more closely to ensure a healthy supply chain to provide an un-interrupted flow of goods to the buyer.

Supplier’s PerspectiveA supplier wants to be paid for the

goods it sells, on a timely basis. Prices charged by a supplier reflect the compa-ny’s cost structure, including the cost of extending credit to customers. A pow-erful customer’s unilateral extension of

payment terms increases a supplier’s cost, which increase may or may not be passed on to the customer.

If not, there is a reduction of the supplier’s revenue, exacerbated by having its working capital tied up in slower paying accounts receiv-able, and an increase in DSO. Historically, a “good paying customer” was one who paid within invoice terms, often taking a 1-2 percent dis-count for paying within 10 days.

Suppliers tend to initially reject the extension of payment terms, which may depend on the parties’ relative bargaining position. If a supplier is part of a diverse supply chain that sells products readily ob-tainable from a competitor, a supplier may acquiesce to keep sales. On the other hand, if the supply chain is limited, such that there is little risk of a losing business, or if the goods sold are unique to that buyer and seller, the supplier may have leverage to “just say no.”

All participants in SCF programs should consider the potential advantages of SCF programs in foreign sales transactions, and the im-pact if interest rates increase materially.

Regardless of the varying perspectives of the participants in SCF, it appears to be a fast-growing part of domestic sales transactions and international trade. SCF programs will no doubt evolve to meet the changing dynamics of its participants, but appears to be poised to take a prominent role in facilitating global trade.

Content contributed Shumaker, Loop & Kendrick, LLP, a full service law firm founded in 1925 with more than 240 attorneys practicing in Toledo and Columbus, Ohio; Tampa and Sarasota, Florida; and Charlotte, North Carolina. Content written by David H. Conaway, Partner, whose principal area of practice is bankruptcy. For more information, contact him at 704-945-2149 or [email protected] or visit www.slk-law.com..

WORKING ON THE CHAIN GANGSUPPLY CHAIN FINANCE AS THE NEW NORMAL

BANK

Buyer (customer)Supplier 2Supplier 1

Supplier 4Supplier 3

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Supplier ships goods andinvoice to buyer (DAY 1)

Supplier sells invoice to a

bank at a discount to

receive immediate

payment (DAY 5)

Bank notifies supplier of invoice approval (DAY 5)

Buyer approves invoice for

payment (DAY 5)

Buyer pays Bank invoice amount on due date (DAY 90)

SUPPLY CHAIN FINANCE

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Globalization increasingly links people through business, trade, communication and common global challenges, impacting every aspect of our lives. Global education and increased interaction with the rest of the world provide ex-

posure to diverse cultures, religions and ethnicities, making us more aware of the need to find collaborative solutions.

While most American schools over the last decade have promot-ed global education in some form to help students understand the world’s cultures and global issues, Providence Day School in Charlotte has been at the forefront of global education initiatives. Assistant Head of School for Academic Affairs Derrick Willard notes, “In the 21st century we are called on to coach the skills and dispositions that will help our students to create and govern peaceful, thriving and sus-tainable local and global communities.”

Beginning in 2005, Providence Day created the first Global Studies Diploma (GSD) program in the country for upper school stu-dents. Students in the program take a series of global courses that in-tegrate knowledge, skills and character dispositions to examine and create solutions to key global issues. In the process, students gain per-spectives and skills like problem-solving, collaboration, critical think-ing and empathy.

Senior year students take a global leadership course that encap-sulates their global education development. Travel abroad, hosting international students, and global speakers round out their experien-tial requirements. On graduation day, GSD students proudly receive both a Providence Day diploma and a GSD diploma. A number of in-dependent schools across the country have adopted the global stud-ies diploma model in some form.

At Providence Day, global learning is emphasized in every division and right from the start. Early on in Transitional Kindergarten(TK) TKers learn about China, Germany and Kenya through a month-long passport program. World language courses starting in TK help students develop cultural competency and lan-guage proficiency.

Stacie Nevadomski Berdan, Allen Goodman and Sir Cyril Taylor in their book, A Student Guide To Study Abroad, argue that global-ization requires our students to have cross-cultural communication skills, deeper cultural understanding, enhanced world language learning, and an experience that gets students out of their cultur-al comfort zone to help them develop cultural literacy and the abil-ity to interact with non-Americans. Traveling abroad can help make that happen.

Providence Day offers student travel opportunities to nearly every continent. Several trips involve exchanges with “sister” schools in China, Denmark, France, Germany, Israel, and Peru. Providence Day students live, study and interact with sister school students and

their families. Reciprocally, sister school students visit Providence Day for one to two weeks.

Social responsibility is a central tenet of the Providence Day mission. Some trips in-volve major service learn-ing like the ones to Belize and South Africa. Others emphasize world language enhancement such as the trip to Argentina. Five trips earn students cred-it toward their graduation re-quirements. Also, Providence

Day is now a member of Roundsquare International which provides rich opportunities for students in the network to actively engage with students from around the world addressing global issues.

Global learning requires global faculty. Providence Day was first in the nation to create the Global Educators Certificate (GEC) program. Teachers enroll d in the program travel to two different parts of the globe and bring their cultural experiences to their classrooms and the larger Providence Day community.

Moving forward, Providence Day has adopted a strategic TK-12 global education vision. As Head of School Dr. Glyn Cowlishaw em-phasizes, “It’s vital for our schools to prioritize strategically planned opportunities for students to develop the ability to appreciate and value the differences among people in our school community as well as in the larger world that’s impacting them.”

OF INTEREST: Focusing on Global Education

GOING GLOBAL PROVIDENCE DAY AT THE FOREFRONT OF GLOBAL EDUCATION

Content sponsored by GreerWalker LLP, a Charlotte-based accounting and business advisory firm offering assurance, accounting, tax, and consulting services. Content contributed by Dr. Loren Fauchier, Director of Global Education at Providence Day School in Charlotte, and the Vice President of the Global Education Benchmark Group, a consortium of 150+ independent schools in the U.S., Canada, Britain and Turkey. For more information, contact him at [email protected] or 704-887-6000 or visit www.ProvidenceDay.org.

Fauchier

Sponsored by

2015-2016 TRAVEL OPPORTUNITIES

Belize Outdoor Adventure and Service Learning

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TK Goes Global

Contributed by

Providence Day School students at a learning service project in Belize (2015).

5


https://www.youtube.com/embed/MzVM-fbCRXY?rel=0&autoplay=1

between our two countries. We undertook this study, New Neighbors, in the belief that American citizens and leaders, at the nation-al, regional, and local levels, all need to better understand the impact of Chinese invest-ments in the United States.

With the report’s release, American poli-cymakers and the general public have a new window on the local realities of Chinese in-vestment in the United States. New Neighbors offers, for the first time, a full estimation of the local investment, operations, and employ-ment effects of Chinese FDI.

As of today, Chinese firms directly em-ploy more than 80,000 Americans across the country, and that number is poised to quadruple over the next five years. The per-sonal relationships that develop and the un-derstanding that each side derives from these investments help foster a more peaceful and prosperous Asia-Pacific region. Just as when American investors first went to China, peace and prosperity are enhanced when Chinese investors create jobs, improve infrastructure, and work side by side with Americans to build a better America, and a better world.

Our New NeighborsForeign direct investment (FDI) is a vital

component of the United States economy today and has been throughout the nation’s history. Investors from abroad are a source of growth, employment, competitiveness, and

Since 2000, Chinese FDI has grown rapidly, reaching nearly $12 bil-lion in 2014 alone. Chinese firms are engaged in areas as varied as

construction, energy, entertainment, auto parts, chemicals, real estate, medical equip-ment, telecommunications and sportswear. Whether a new facility or the acquisition of an existing one, these local operations pay local, state, and federal taxes, provide jobs, push in-novation, build trade linkages, and, in the pro-cess, touch and improve the lives of countless Americans.

The Chinese and Americans involved in these investments are learning about each other, making contacts, and creating a new pillar for a more productive U.S.-China rela-tionship. The early results have often been transformative. A $100 million copper plant near Thomasville, Alabama, where unem-ployment rates were among the highest in the state, has revived the surrounding area.

“The Golden Dragon Precise Copper Group currently employs over 200 people and is in the process of hiring an addition-al 110, lifting many families off of govern-ment assistance and changing the fabric of our community,” according to Thomasville Mayor Sheldon Day, adding that a further ex-pansion would eventually lead to as many as 500 total jobs.

Fuyao Glass, which last year bought an idle General Motors plant outside Dayton, Ohio, promises to invest hundreds of millions and bring more than 1,500 jobs to the eco-nomically depressed area in the coming years.

And the job numbers don’t stop there. These investments support construction jobs to build or re-tool the facilities, jobs at vendors in the supply chain, jobs at neigh-borhood businesses that benefit from a bet-ter local economy. While this report doesn’t capture either these indirect jobs or any part-time positions at the firms themselves, if it did, we know that the total number of jobs provided would be greatly multiplied.

For almost 50 years, the National Committee on United States-China Relations has been building constructive relations

OF INTEREST: Positioning Charlotte As A Global Hub Of Commerce

MEET OUR NEW NEIGHBORSCHINESE FOREIGN DIRECT INVESTMENT IN THE U.S.

GuestContributor

innovation, and their presence is living proof of America’s commitment to openness, mar-ket competition, and putting the interests of consumers above the welfare of corporations.

Companies from China have not histori-cally played a direct role in the U.S. economy, and FDI was largely a oneway street from the U.S. to China from the 1980s to the 2000s. In recent years, however, Chinese FDI into the U.S. has taken off, bringing a growing num-ber of firms from China face-to-face with U.S. communities; new corporate neighbors are moving in.

This report details—for the first time—Chinese commercial investment in the U.S. down to the congressional district level, using a unique dataset in development since 2009. With that granular information the re-port describes the picture so far in terms of investment value, operations, and associated employment. The key findings are as follows.

The recent wave of Chinese FDI has brought new Chinese neighbors to towns across America. From 2000 to 2014, Chinese firms spent nearly $46 billion on new estab-lishments and acquisitions in the U.S., most of it in the past five years. As of the end of 2014, we count 1,583 establishments by Chinese firms in the U.S., stretching across all regions of the country. Importantly, while invest-ments in perceived trophy assets such as the Waldorf Astoria Hotel dominate the head-lines, Chinese firms are clearly interested in

Chinese FDI in the U.S. by Congressional District (cumulative investment 2000-2014)

Source: Rhodium Group. *Cumulative Value of Chinese FDI Transactions, 2000-2014.

Sponsored by


6

MEET OUR NEW NEIGHBORSCHINESE FOREIGN DIRECT INVESTMENT IN THE U.S.

the value of American workers and manu-facturing in some of the areas with the low-est per capita incomes in the United States as well. The benefits of Chinese capital are dis-tributed nationwide, not just in high-income parts of the country.

Local economies benefit from great-er levels of investment. The biggest recipi-ents in terms of cumulative investment from 2000-2014 were districts in North Carolina, Illinois, New York, Virginia, and Texas. While acquisitions (which account for the majority of investment) mostly represent change in ownership, many Chinese takeovers have generated local investment as the new own-ers have saved firms from bankruptcy and provided new financing lines. In most cases, acquisitions have led to expansions, and ex-amples of downsizing are rare. Greenfield projects have already generated billions in local investment and investments in big manufacturing and service sector projects have accelerated significantly in the past 18 months.

Chinese-affiliated companies now directly employ more than 80,000 Americans. The recent U.S. expansion of Chinese companies means more than 80,000 Americans are on Chinese company payrolls, up from fewer than 15,000 five years ago. These figures do not include indirect em-ployment during construction or at suppliers, which would add tens of thousands of addi-tional jobs. The top districts in terms of jobs are home to Chinese-affiliated companies in manufacturing and services sectors, which have higher employment intensity than

technology investors such as Tencent and Alibaba have emerged as important sources of capital for startups and early stage growth companies.

FDI can be a catalyst for greater ex-ports of “Made in the U.S.” goods and ser-vices to China. Growing investment creates important linkages which can help local economies reach the Chinese market with their goods and services. There are already many success stories in advanced manufac-turing and consumer goods and there is tre-mendous potential to expand U.S. exports in those categories and new areas such as ag-riculture and food. FDI from China can also help to facilitate the export of U.S. services— including entertainment, hospitality, and fi-nancial and business services—to Chinese consumers.

North CarolinaWith nearly $5.5 billion invested, North

Carolina is the second highest recipient of Chinese investment in the U.S.. The more than 80 Chinese affiliates in the state current-ly provide over 15,000 jobs. This presence is in part the result of acquisitions of U.S. firms located in North Carolina (IBM, Smithfield), but also strong organic growth of Chinese companies in the state in recent years.

One significant employer in North Carolina is Smithfield, which operates 14 fa-cilities in the state with more than 8,000 employees. These are spread evenly through congressional districts NC-01, NC-03, NC-08, and NC-09, and most importantly NC-07. The Tar Heel facility (NC-07) is the world’s largest pork processing facility.

The second top employer in North

Chinese-owned Companies with R&D Operations in the U.S.

A123 Systems Massachusetts, Michigan Baidu California Changan Automobile Michigan Cryptic Studios California Epic Games North Carolina Huawei California Lenovo North Carolina MiaSole California Riot Games California Suning Commerce California WuXi AppTec Pennsylvania Source: Rhodium Group

Company Location

Employment Provided by Chinese Companies in the U.S. Number of full-time jobs directly provided by U.S. subsidiaries of Chinese companies

0

10,000

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70,000

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90,000

2000

2001

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Source: Rhodium Group

Stock, $ billion

0

500

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2003

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Projections for China’s Global Outbound FDI in 2020*

Number of full-time employees

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450,000

2000

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LOW

MEDIUM

HIGH

ACTUAL

Source: Rhodium Group*Projections are based on three different scenarios for cumulative Chinese investment in the U.S. in 2020 ($100, $150, $200 billion) and the current employment intensity of investment.

Projections for Employment at Chinese-affiliated Companies in the U.S. to 2020*

Top 15 Recipient Districts of Chinese FDI in the U.S.

NC-04 3,360 Raleigh-Durham David Price Triangle IL-07 3,210 Chicago Danny K. Davis NY-12 2,250 New York City Carolyn Maloney VA-04 1,980 Eastern Virginia J. Randy Forbes TX-07 1,780 Houston John Culberson TX-23 1,640 SW Texas Will Hurd OK-03 1,580 NW Oklahoma Frank Lucas KS-03 1,380 Kansas City Kevin Yoder MA-06 1,270 NE Massachusetts Seth Moulton NC-07 1,250 Southern NC David Rouzer CA-17 1,040 San Jose Mike Honda CA-12 1,020 San Francisco Nancy Pelosi TX-27 920 Corpus Christi Blake Farenthold NY-10 920 New York City Jerrold Nadler IA-04 870 NW Iowa Steve King

District Metro Area RepresentativeInvestment($ Million)


Top 15 Districts in Terms of Direct Jobs Provision by Chinese Companies in the U.S.

District Jobs Metro Area Representative


NC-07 7,640 Southern NC David Rouzer MI-05 5,230 Central Michigan Dan Kildee NC-04 4,120 Raleigh-Durham David Price Triangle

VA-04 3,800 Eastern Virginia J. Randy Forbes SD-01 3,400 South Dakota at-large Kristi Noem IA-04 3,290 NW Iowa Steve King MO-06 3,190 Northern Missouri Sam Graves NE-03 2,280 Western & Central NE Adrian Smith IL-07 2,110 Chicago Danny K. Davis IL-17 1,710 NW Illinois Cheri Bustos CA-17 1,450 San Jose Mike Honda KY-05 1,220 Eastern Kentucky Hal Rogers CA-12 1,110 San Francisco Nancy Pelosi NY-12 1,100 New York City Carolyn Maloney CA-33 1,100 Los Angeles Ted Lieu



Company Location


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0

10,000

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Stock, $ billion

0

500

1,000

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0320

0420

0520

0620

0720

0820

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1120

1220

1320

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1520

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ACTUAL

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0

50,000

100,000

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Sponsored by

energy or real estate investments. Fears that Chinese acquirers could systematically move acquired assets and related jobs back to China have not materialized. Instead, new Chinese owners have, in most cases, sustained and ex-panded local employment after they acquired U.S. assets. Job creation through greenfield FDI is approaching the 10,000 mark, with sig-nificant further growth imminent from proj-ects already in the pipeline.

Chinese companies are contributors to American innovation and competi-tiveness. There is no evidence that Chinese investors are moving high value-added ac-tivities back to China. Instead, U.S. innova-tion clusters, strong protection of intellectual property rights, and the talent pool are major draws for Chinese companies, which now spend hundreds of millions of dollars every year on research and development activi-ties in the U.S.. Chinese companies also con-tribute to the training of local workers, and

7


Carolina is Lenovo, with a track record of 10 years and nearly 5,000 employees. In 2005, Lenovo acquired IBM’s personal comput-ing business including its operations in the Research Triangle (NC-04). Since 2008, Lenovo also operates a manufacturing facility in Whitsett (NC-06). In 2014, Lenovo complet-ed the acquisition of IBM’s x86 server busi-ness, which is also located in the Research Triangle. It also plans to move some server production from China to the U.S.

Chinese companies have also invested in North Carolina’s furniture industry, includ-ing Fine Furniture and Design, a greenfield investment in High Point (NC-06); the acqui-sition of Schnadig Corporation in Greensboro (NC-12); and Talon Systems in Statesville (NC-05). Homestar Light Industrial Co., which ac-quired Talon, plans to add 40 jobs and retain all 120 currently at the operation.

NC-09 and NC-10 are home to a large group of medium-sized companies such as Jetion Solar, a solar panel manufacturer, and NouvEON Technology Partners, both in Charlotte. NC-13 is home to another major Chinese subsidiary, Epic Games, which is famous for its game Gears of War. The video game developer is owned by

Content contributed Shumaker, Loop & Kendrick, LLP, a full service law firm founded in 1925 with more than 240 attorneys practicing in Toledo and Columbus, Ohio; Tampa and Sarasota, Florida; and Charlotte, North Carolina. Our Charlotte office is sharing in the fast-paced development of the Carolinas by providing representation on corporate, securities, real estate, tax, litigation, immigration, employment, creditors’ rights, international business transactions and litigation, financial transactions, health and all other business specialty areas. For more information, contact Scott M. Stevenson, the Charlotte Managing Partner, at 704-945-2180 or [email protected] or visit www.slk-law.com.

Executive Summary: New Neighbors: Chinese Investment in the United States by Congressional District. Prepared by the National Committee on U.S.-China Relations and Rhodium Group, May 2015. The National Committee on United States-China Relations is a private, nonpartisan, American non-profit organization that promotes understanding and cooperation between the United States and Greater China. Rhodium Group (RHG) is an economic research firm that combines policy experience, quantitative economic tools and on-the-ground research to analyze disruptive global trends. The full study is available at www.ncuscr.org/fdi.

OF INTEREST: Positioning Charlotte As A Global Hub Of Commerce

Sponsored by

Chinese internet giant Tencent and provides nearly 300 jobs in Cary.

After experiencing major structural ad-justments from the reorganization of global value chains (for example, its historically im-portant textile and furniture industries), North Carolina has become one the most important destinations for Chinese investment in the U.S. Opportunities for expanding Chinese capital in-flows exist particularly in the state’s high-tech sectors (including information technology and biotech) and other service industries.

Much is still to come. Chinese FDI is only at the initial stage Japanese firms reached in the 1980s, and there is tremen-dous growth potential for Chinese invest-ment, job creation, and other benefits. If the U.S. continues to be a major recipient of China’s booming outward investment, it could receive between $100-200 billion of investment by 2020. Based on past em-ployment intensity, this would increase the number of full-time U.S. Jobs provided by Chinese U.S. affiliates to somewhere between 200,000 and 400,000.

Greater Chinese FDI marks a new chapter in U.S.-China economic relations. Growing outbound FDI is a major channel through which the changes in the Chinese economic model will be felt in the U.S. econ-omy. Higher levels of investment mark the beginning of an era of U.S.-China economic engagement that brings a wider array of mu-tual benefits rather than a limited set of win-ners and losers, as arose from the deepening of goods trade of the past two decades.

From local impacts to national interest. The United States is competing with dozens of other attractive economies including Europe, Australia, Canada, and Brazil for these new capital flows. Recent years have seen greatly stepped-up local-level effort by mayors, governors, and other local officials to attract these new investors to the neighborhood. Greater awareness of the local benefits from Chinese investment should help to sustain recent progress in aligning local opportunities and national interests so the U.S. will be successful in that competition.

Chinese FDI in the N.C. by Congressional District (cumulative investment 2000-2014)

Source: Rhodium Group. * Cumuiative value of Chinese FDI transactions, 2000-2014. ** Number of jobs provided by Chinese establishments as of 2014.



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8

Charlotte is home to over 1,000 foreign-owned compa-nies that have chosen to do business in the United States. Not only do international busi-nesses benefi t from the cama-raderie of other foreign-owned fi rms, they also benefi t from the support mechanisms this com-munity provides to help them

acclimate and thrive.The World Aff airs Council of Charlotte (WACC)

is a very integral mechanism in that regard. As a regional center for education and discussion of world aff airs, the Council seeks to provide lead-ership for global thinking, believing that a broad perspective is necessary for eff ective competition in the global economy and for responsible citizen-ship in an increasingly interdependent world.

Here are some of our program highlights.

Major General Michael J. Kingsley, Chief of Staff, United States Africa Command (AFRICOM)

The World Aff airs Council of Charlotte recently hosted Major General Michael J. Kingsley, Chief of Staff of United States Africa Command (AFRICOM), who discussed the global security issues in Africa as they

relate to the regular political turmoil in the region, the spread of emergent health threats across borders and the growth of groups like Boko Haram that promote terror and constant crisis in the African continent.

Major General Kingsley also addressed AFRICOM’s role in concert with interagency

and international partners to help build defense capabilities, respond to crisis, and deter and defeat transnational threats in order to advance U.S. national interests and promote regional security, stability, and prosperity in Africa.

Karl-Theodor zu Guttenberg, German Minister of Defense ( 2 0 0 9 -2 0 11) , G e r m a n Minister of Economics and Technology (2009)

The World Aff airs Council of Charlotte recently hosted Karl-Theodor zu Guttenberg, former German Minister of Defense

(2009-2011) and Economics and Technology (2009), who shared his perspectives on the transatlantic relationship between Germany and the United States.

The United States is one of Germany’s closest allies and partners outside of the European Union. Bound together through historical ties of friendships, both countries share common experiences, values and interests—from climate protection, international financial architecture to identification of the human genome—though both countries have disagreed on policies and agendas that don’t fit their respective national agendas. Despite those disagreements, Germany and the United States have a multifaceted relationship and robust friendship that covers politics, economics, cultural exchange and global security.

Guttenberg provided valuable insight into the current Germany-U.S. relationship through an engaging presentation on global trends impacting Europe and how both nations can overcome their long-standing diff erences on regional security and political confl icts so they can continue to play a major role in the world.

Corporate Membership and Support:

Will You Invest in the World Aff airs Council

of Charlotte? • Learn about international affairs from foreign government/state offi cials, renowned authors, and world leaders. • Build professional networks through Council events. • Support international education in the Charlotte community. • Increase corporate publicity through program and education sponsorships. • Reach out to sophisticated and high level individuals in the Charlotte community. • Build, maintain and strengthen client relationships.

For more information regarding Corporate Membership with the World Affairs Council of

Charlotte, please contact Charlotte Klopp at [email protected]

or 704-697-7759.

WACC President and CEO L.J.

Stambuk

www.worldaff airscharlotte.org

Guttenberg, Minister of Defense, Germany

AFRICOM 2014 Year in Review

World Affairs Council of Charlotte Upcoming 2015-16 Programs November 12 .......... WACC Speaker Series with Carrie Hessler-Radelet, Director of Peace Corps

November 18 .......... 2015 WorldQuest / Academic WorldQuest

December 3 ............ WACC Speaker Series with Matthew Bishop, Globalization Editor for The Economist magazine

January 21 .............. WACC CEO Series with Lynn Good, President and CEO, Duke Energy Corporation

March 22 ................. WACC Ambassadors Circle Series with H.E. Gérard Aruad, Ambassador of France to the U.S.

Kingsley

zu Guttenberg

GLOBAL LEADERS SEEK CHARLOTTE BUSINESSESAmbassadors, Diplomats and Distinguished Leaders See Charlotte as Entry to U.S. Domestic Market

https://www.youtube.com/embed/Nzlb_rya8yw?rel=0&autoplay=1

https://www.youtube.com/embed/2Y122zzzeNo?t+3m55s?rel=0&autoplay=1

MemoryMemo Application Overview

emoryWhere?

What?

Who?

When?

Why?

PHOTOGRAPHIC


10

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MemoryMemo and LifeLens Imaging: The Sustained Capture of Memory

A picture may be worth a thousand words, but two techno entrepreneurs in Charlotte want to make them worth a whole lot more. Given

the accelerating pace of digital photography and social media, they are about to strike a gold mine. For each, it was merely a matter of solv-ing a problem.

Henry Mummaw was frustrated with having to label photos explaining where they were taken and who was in them. He remembers when he was growing up how much time his mother spent identifying him and his identical twin brother on the backs of photographs.

Greg Robey was frustrated by the sheer number of family photos he had amassed—over 12,000—well above the national aver-age of 3,000 (per adult). And to make matters worse, a lot of those pho-tos were deteriorating from the very chemicals used to create them.

by gene stowe

MemoryMemo and LifeLens Imaging: MemoryMemo and LifeLens Imaging:

11


Together, the duo have addressed those issues through the launch separate, but “re-lated” technology companies—one uses pro-prietary software to create digital “memos” to photos featuring voice and text, and the other is a proprietary service and technology model for restoring and digitizing photos.

“Henry and I believe that memories mat-ter,” says Robey emphatically. “We have both been blessed with great family memories over the years. We want to protect them, and we be-lieve there are millions of people like us who want to be able to do that. We’ve built some very unique technologies to accomplish that.”

“These are important technologies,” em-phasizes Mummaw, “to � nally create a meth-odology by which the entire photographic context—reality and memories—can be digi-tally preserved in one location.”

Digital Photos with Voice and TextThe pace of digital photography is stagger-

ing. More than 11 trillion digital images have been taken in the past 15 years, and the annu-al pace now exceeds one trillion. Nearly four trillion are on the Internet already, and more than 200,000 are uploaded to Facebook every minute. Constant advances in smart devices and Internet technology are only accelerating the process.

“There are upwards of 10,000 photog-raphy apps available on smartphones alone

focused on editing images. We wanted to be the � rst application that focused on ‘the back’ of the photo,” Robey quips.

Together, he and Mummaw have de-veloped MemoryMemo, an app for iPhone, Android and desktop computers, en-abling shutterbugs to annotate each snap-shot with voice and text. Their proprietary MemoryMemo software automatically col-lects that information—the universally-recog-nized “5Ws” of Who, What, When, Where and Why—in a new � le extension: .memo.

The Who (the photographer), the When (date and time), and the Where (GPS location), are recorded by the smart devices used to take the photo and are attractively displayed as text in the app and desktop software. The

company’s software allows the user to see them in the .memo, but more importantly, al-lows the user to add text and audio to further explain the What and Why.

Users can capture up to 30 seconds of sound, called an MTrack, before and after the shot. Audio comments can also be added later. “This is the � rst technology to allow you to capture comments made before and after the photo is taken,” says Mummaw.

Being able to add text and actual voice to the photographic memory not only preserves the

context, but enhances the meaning for future generations. The photo can actually “speak,” jogging the memories of family and friends, and providing a much more intimate experience.

The user can add information at any time and ask friends to contribute as well. The in-ventors created a system based on tra� c sig-nals that indicates whether the .memo is incomplete (red), in process (yellow), or com-plete (green). The .memo file includes an image � le, text � le and a voice commentary audio � le. They are archived for free in the company’s cloud, called MCloud where they can be searched by any of the 5Ws.

“We capture all that information and en-crypt it into one � le that is your property,”

“There are upwards of 10,000 photog-

raphy apps available on smartphones alone focused on editing images. We wanted to be the � rst application that focused on ‘the back’ of the photo.”

Welcome to MWorld

(l to r) William G. “Greg” RobeyHenry H. MummawChairmen MemoryMemo LLC, LifeLens Imaging LLC


12

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Mummaw explains. “You own it. It solves the ownership problem that’s been plaguing pho-tography forever.

“The purpose is to create an easy mecha-nism by which you can scan and sort through thousands of digital fi les and fi nd the one you want. When you search a particular date, for example, every photograph you took on that date is found and displayed immediately,” he continues. “Now search engines will be able to create revenue opportunities from digital pho-tos. They will be able to see and read .memo

text fi les. They will know exactly what the photography is about.”

The company’s MWorld is a photogra-phy platform where users keep their photos

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and social uses, the MemoryMemo utility technology has a wide range of commercial possibilities for those who use photography in their work.

Preserving Analog Memories Digitally“For anyone born before 1995, their child-

hood memories are on analog photographs or slides,” Robey points out. “The chemicals that are used in the production of photos and slides begin to break down from the very be-ginning. We want to protect the memories on those photos and slides before they, too, begin to fade.”

With LifeLens Imaging, the founders have a process for preserving and enhancing pho-tographs digitally, correcting for color and quality degradation at the same time. Their strategy addresses major barriers to preserv-ing memories—90 percent of people are reluc-tant to part with their irreplaceable pictures for weeks while they are shipped elsewhere for processing.

LifeLens Imaging transforms paper pho-tographs and slides into enhanced digital images with the latest Kodak Perfect Touch tech-nology, providing u nprecedented c o nve n i e n c e and econo-

private or share them, including emailing or posting on social media. Eventually users will be able to print their .memos information. By combining text with images in a new unique fi le extension, MemoryMemo has created a new communications medium.

The technology opens vast creative possi-bilities for words-and-picture albums that cap-ture the celebration of a wedding ceremony, the hilarity of a child’s birthday party, or even a compiled life story. The company also pro-vides training videos to make such projects easy for users.

“Instead of a high school yearbook photo-graph with merely a caption,’ Mummaw com-ments, “imagine one that, in addition to text, has QR codes next to the pictures so that the voice and words of the person could be heard at the same time. Ten years from now, that person’s voice and words will still be there.”

Other people can contribute to the con-text or memories at any time. For example, Robey’s mother shared old stories of her life and his childhood that he’s added to her im-ages. “It’s amazing what I learned about my mother’s earlier days and my childhood—more than I would ever have known,” he says.

“MemoryMemo is a memory manage-ment system,” explains Mummaw, “where-

in the photograph is preserved along with its memories to last forever. We

want to be a solution that everyone can use and enjoy.”

In addition to the personal

How to Add and Edit the 5Ws

tographs and slides into enhanced digital images with the latest Kodak Perfect Touch tech-nology, providing u nprecedented c o nve n i e n c e and econo-

How to Create a Memo

in the photograph is preserved along with its memories to last forever. We

want to be a solution that everyone can use and enjoy.”

Scanning services

provided by

Learn more at

LifeLensImaging.com or

call 1-844-722-6728.

Before Enhancement

“These are important technologies to � nally create a

methodology by which the entire photographic context—reality and memories—can be digitally preserved in one location.”

my. Customers simply drop off the originals at their local Walgreen’s store and, at low cost and within a short period of time, their irre-placeable memories are transformed into digital photos—and even restored in the pro-cess. Walgreen’s national footprint couldn’t be more convenient, and the photos never leave the community.

LifeLens Imaging uses barcodes to track the pictures and return them to the local store in less than a week after pickup. The fast, re-liable service costs less while attracting more traffi c to partner retailers since the LifeLens uses a proprietary marketing program called Community Partners to produce incremental traffi c for their participating retailers.

In addition, LifeLens Imaging permanent-ly archives the images at no cost to their cus-tomers to protect them against future loss.

The market for these solutions is enor-mous. Around the world, some 3.5 trillion analog photographs and slides are await-ing conversion to digital format. Advances in scanner technology in the past fi ve years have enabled enhancements that correct for the eff ects of aging. The eff ect can be so dra-matic and vibrant that some people replace the original in the frame with the scanned and printed copy.

The founders have completed a pilot launch of LifeLens Imaging with select Walgreen’s locations in Charlotte and plan expansion to surrounding counties and other locations nationwide in 2016. They are part-

nering with several civic, nonprofit and charitable organizations who earn 15

percent of revenue from their referrals.They will roll out seven additional

processing labs in 2016 that will each serve up to 300 retail stores using a

hub-and-spoke system of pickup and delivery. By the end of 2017, they expect to be in all Walgreen’s stores nationwide.

Agreements with some 8,200 Walgreen’s stores, along with other major retailers, will provide access to 70 percent of the retail photo centers in the United

After Enhancement


14

https://www.youtube.com/embed/D0P9lij0Tmg?rel=0&autoplay=1

https://www.youtube.com/embed/w0r0sk1cDDo?rel=0&autoplay=1

States, and the 95 percent of Americans liv-ing within fi ve miles of one of these stores.

To serve them, LifeLens Imaging expects first to establish 52 laboratories nationwide, with plans for up to 150. The offi ces will be about 2,000 square feet with scanning technicians, lo-gistics drivers, and at least one sales manager to work with Community Partners who help attract customers and share in the revenue.

Photographic PassionBoth Mummaw and Robey share the pho-

tographic passion. Both have amassed signifi -cant experience that has helped them in their formulation of this new technology.

Mummaw has a 34-year senior man-agement career in professional photogra-phy, including a nine-year stint with PCA International, Inc., at the time the nation’s largest portrait photography company serv-ing most nationally known retailers. His ex-tensive photography experience includes a long-standing relationship with Eastman Kodak, now Kodak Alaris, the world’s largest provider of photographic equipment.

Robey held numerous business devel-opment, sales and ecommerce positions for FedEx in the U.S. and Europe over a 23-year career. He was also vice president of sales op-erations for AmeriGas, the nation’s largest pro-pane company for six years.

Together they launched LifeLens Imaging in 2012, and MemoryMemo the following year. Scott McNeely, the cofounder of Sun Microsystems, advises the partners in posi-tioning both the companies for global mar-kets. “Scott believes these are disruptive technologies,” Mummaw comments.

Charlotte connections have been cen-tral to the launch, beginning with Thurston Investments LLC, which backed the venture—rare support for a technology startup outside of Silicon Valley.

The patent law firm Trego, Hines & Ladenheim handles intellectual property is-sues. BGW CPA PLLC handles accounting. CC Communications, Inc. partnered with

Gene Stowe is a Greater Charlotte Biz freelance writer.Some images provided by the company.

Mummaw and Robey in technology devel-opment and marketing for MemoryMemo. Vintage Marketing, Inc. in Davidson han-dles the website creative and marketing for LifeLens Imaging.

The complementary businesses refl ect the founders’ personal interest in preserving memories by safeguarding and annotating the rich photographic record.

“That’s what we began with—a mission to help people understand that if they don’t do something, their photographic memo-ries are going to be lost. It’s not if; it’s when,” Mummaw says, pointing out that while no one would dispose of those cherished memo-ries, fewer than 5 percent have taken the steps necessary to protect them.

“I was shocked when I looked at my faded family’s photographs,” adds Robey. “Now that I have scanned and enhanced these images, they are preserved and protected forever, and I can share them and their memories through MemoryMemo, social media or email.”

“MemoryMemo is much more than just an application,” Mummaw states, “It’s an in-tegrated platform that combines our MWorld technology and desktop computer software to capture and maintain memories. This memo-ry management system is designed to be eas-ily used by all.

Both MemoryMemo and LifeLens Imaging present the opportunity to collect and preserve family histories, passing mem-ories from one generation to the next. The ap-plications on a commercial basis are without limits, documenting actual facts and circum-

stances surrounding the photo that was taken and the entire experience.

“LifeLens Imaging helps you preserve and protect your im-ages and MemoryMemo helps you capture and preserve the

MemoryMemo LLCLifeLens Imaging LLC9506 Monroe Rd., Ste. ABCharlotte, N.C. 28270Phone: 980-245-8434Principals: Henry H. Mummaw and William G. “Greg” Robey, ChairmenEmployees: 9Rights: MemoryMemo produces proprietary integration software to capture the entire context of a digital photo—the 5Ws of Who, What, When, Where and Why—incorporating voice and text in a proprietary .memo fi le through integration technology with Apple and Google Android smartphones; LifeLens Imaging preserves and enhances analog photographs and slides digitally.www.memorymemo.comwww.lifelensimaging.com

“These are solutions to a signi� cant problem—the

sustained capture of memory. We want them to be perceived as a solution whose time has come. We want people to identify both solutions as fun and meaningful.”

™MemoMemory

reasons why you took the photo, or in our case, the 5Ws associated with that memory,” con-cludes Robey.

“These are solutions to a significant problem—the sustained capture of memory,” says Mummaw. “We want them to be perceived as a solution whose time has come. We want people to identify both solutions as fun and meaningful.”

LifeLens Imaging How It Works

you capture and preserve the

HOW IT WORKS

15


https://www.youtube.com/embed/_n2LwOW5NLM?rel=0&autoplay=1

MANA Nutrition and The Calorie

Cloud

What is MANA?

MANA is a version of RUTF, or ready-to-use therapeutic food, for children suffering from severe acute malnutrition (SAM).

sile

nt im

ages

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16

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T his dense mixture of peanut butter paste, vitamins, milk, oil, and

sugar comes in a small squeez-able packet about the size of an iPhone. Administered three times per day for six weeks, it can rescue a young child from the nutritional cliff which is poised to take his or her life.

Called RUTF, ready-to-use therapeutic food, this is the product that Charlotte-based MANA Nutritive Aid Products, Inc. manufactures and distributes under the leadership of founder and CEO Mark Moore. The

company’s headquarters is appropriately located in a former grist mill that helped to feed people

for over 150 years.

The MANA product is used to treat severe acute malnutrition

(SAM) and has been proven effective in saving millions of

lives around the world.

MANA Nutrition is saving lives with a simple formula

his dense mixture of peanut butter paste, vitamins, milk, oil, and

sugar comes in a small squeez-able packet about the size of an iPhone. Administered three times per day for six weeks, it can rescue a young child from the nutritional cliff which is poised to take his or her life.

Called RUTF, ready-to-use therapeutic food, this is the

Products, Inc. manufactures and distributes under the

company’s headquarters is appropriately located in a former grist mill that helped to feed people

The MANA product is used to treat severe acute malnutrition

simple formula

by zenda douglas

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17

Severe Acute MalnutritionSAM is defined as a weight-for-height

measurement of 70 percent or less below the median, by visible severe wasting, or by the presence of nutritional oedema. An estimat-ed 20 million children currently suffer from severe acute malnutrition. Most are in south Asia and Sub-Saharan Africa.

Approximately one million children die each year as a result of SAM, which can be a di-rect cause of death or can compromise a child’s immune system, leading to other fatal diseas-es. Malnutrition accounts for 35 percent of deaths among children under five years of age.

MANA was founded in 2009. The name stands for Mother-Administered Nutritive Aid and is a reflection of the company’s dedicated belief that moms are the best and most trust-worthy allies in fighting malnutrition.

Prior to the use of RUTFs, the protocol for treating SAM was to get the child to a health care facility, a process that was severely lim-ited by logistics. Many countries don’t have a set of national health policies or a health infra-structure in place to treat severe malnutrition.

If a mother is able to bring their child to a hospital, she is more than likely leaving other young children behind in similar condition. With RUTFs, mothers can directly feed their children.

“RUTF is like peanut butter on steroids. It’s an amazing product.” exclaims Moore. Approximately 94 percent of the children who are treated with RUTF are successfully pulled back from the nutritional cliff.

“It’s for kids beyond hunger; they’ve ceased to be hungry due to nutritional defi-ciency,” says Moore. “When you cease to be hungry—physically, mentally, spiritually—you are dying.”

A child dies every 10 seconds—more than malaria, AIDS, TB combined times three—according to Moore. “SAM is a huge killer of children, dying for no reason…dying simply because they don’t have a little peanut butter and powdered milk.”

Many factors can contribute to children facing the nutritional cliff such as drought, bad government, war, and parents losing a job. “In Sudan, most children born today will be born on a nutritional cliff—born hungry to hungry moms, living hungry, and, in too many cases, dying hungry,” says Moore.

RUTFs can be used starting with children as young as six months old. While breast feed-ing is always preferable, in many cases moth-ers are unable to produce and provide breast milk. In order to determines who needs RUTF, Children are assessed using a special band

that measures the upper arm“Sometimes they are just measuring the

bone,” laments Moore. Six months to two-to-three years is a window of opportunity for good nutrition. The RUTF treatment comes as part of a six week program of community management of acute malnutrition education and counseling, or CMAM. RUTF is a key ele-ment to treatment as it helps prevent a return to the nutritional cliff.

Peanut Butter-BasedMANA is basically a peanut butter prod-

uct. Organizations such as Doctors Without Borders already had a powdered milk formula.

“The problem with that,” explains Moore,” is that it has to be reconstituted. In many cases, there is a lack of clean water to mix it with and dirty, polluted water may kill the child.”

Additionally, Moore says, mixing such small and precise amounts of powdered milk is often challenging for mothers.

“When the stomach of the kid is the size of a ping pong ball,” Moore acknowledges, “small mistakes can throw the treatment way off.” Also, there are no refrigerators so storage and spoilage are serious problems.

“The formula is effective treatment for a child in a medical facility,” comments Moore, “but isn’t scalable to help the many in need. To solve the problem, the milk formula is sta-bilized, without water, in the peanut butter.

“Kids can tear the end off the package and squeeze the formula into their mouths. They can feed themselves. It’s sanitary.”

“SAM is a huge killer of children, dying for no reason…dying simply

because they don’t have a little peanut butter and

powdered milk.”

Mark Moore Founder and CEO MANA Nutrition

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Moore refers to himself and members of his staff as The MANA Village, a community that just happens to be a company. “We imag-ine the MANA Village to be a forum for other businesses, trade associations, or non-prof-its to join forces to save children from severe acute malnutrition,” he says.

“The revenue we generate in excess of ex-penses is re-invested in things like new equip-ment and additional personnel, which allow us to produce more MANA and save the lives of more children. We not only make a special fortified peanut butter, we also seek to play a wider role to spread awareness of SAM and the 20 million children it affects each year.”

Moore’s knowledge of this crisis runs deeps. He has experience working on the ground in Africa as a rural development work-er and also working on Africa-related issues as the Africa Specialist (deleted and added) in the US Senate and other NGO’s in the Washington DC area. In addition, Moore co-founded Kibo Group, which is a development organization that includes many Africa projects.

From the Farm AbroadMANA manufactures its RUTF in a

35,000-square-foot facility in Fitzgerald, Ga., in the heart of peanut country.

Dominique was severely malnourished when he started on MANA.

After six weeks, Dominique had gained 2.2 kg. RUTF consistenly produces similar results in children around the world.

19


“There was already a big peanut process-ing culture and facility there,” says Moore, who became acquainted with the company called Golden Boy Foods that makes peanut butter under private labels.

“We told them we wanted to buy bulk and we built our factory right across the street. They take peanuts, roast them, grind them and turn them into peanut paste. They send it across the street where we add other ingredi-ents and package it with nitrogen fl ushing for a long shelf life.

“The MANA factory currently employs 55 local Georgia workers and turns out more than 32,000 packets per hour, enough to feed 11,000 starving children per day. In all, we’ve

made 150 million packets since we started, and we’ve treated 1.4 million children with our product,” touts Moore.

MANA has two primary clients: the United Nations (UNICEF) and the U. S. government (USAID).

“We’re part of the supply chain. Tenders come out from these two clients and we seek to be the company that fills those orders.” There are three other companies in the U. S. that make RUTF. The U.S. government is one of the biggest funders of the product.

“UNICEF and USAID have wide distribu-tion networks and established reputations in our target countries to make sure that MANA ends up in the right hands,” describes Moore. “They partner with local governments or non-governmental organizations working on the ground.”

MANA has shipped RUTF to 35 countries, including Kenya, Sudan, Rwanda, Burundi, Chad, Sierra Leone, Burkina Faso, Ethiopia, Nigeria, Syria, Pakistan, North Korea, and Guatemala, to name a few.

The need for RUTF is enormous, but the marketplace has its limits. “As a business, we have very little power in the market; we tend to just respond to it,” says Moore, explaining that the U. S. and UNICEF budgets together are capped at about $160 million. “But it’s a billion dollar problem.

“No business wants to have just one or two customers,” explains Moore. “If UNICEF couldn’t buy our product for some reason, it would be bad for us right now,…and more im-portantly bad for kids. We’re trying to plan ahead for the future and hedge against chang-es that might adversely aff ect both our busi-ness and the kids we serve such as changes from an election that might cut budgets.”

Through the establishment of a new non profi t organization in 2014, Moore’s team has developed a way to generate more funds for MANA and pump out more RUTF. It’s known as Calorie Cloud (www.caloriecloud.org) and it trades on the enormous fi tness and weight loss market in America—a $100 billion industry—to generate money for starving children.

MANA works with American corporations to provide incentives for a more fi t and healthy labor force which, in turn, reduces insurance and health care costs. Corporations happily share in their savings by using a small percent-age of those saving to produce RUTF.

“The whole world is in a battle with a dys-functional relationship with food. In the U.S. that manifests in obesity,” says Moore. “We thought, ‘What if we could go to these people and ask them to give us their extra calories, and then we turn around and give those calo-ries to a hungry child?’ That’s a big deal…a real incentive to losing weight and keeping it off . It’s a win-win-win for hungry children, MANA, and corporations.”

Moore believes the Calorie Cloud concept has huge potential. The Calorie Cloud plat-form already has one large partner in UNICEF US fund, where they have launched UNICEF Kid Power, billed as the fi rst ever wearable for good platform. Kid Power is an eff ort to fi ght childhood obesity and inactivity in the USA and malnutrition in Africa as well.

The bands are in Target Stores and are backed by great partners like Star Wars and Lucas Films. Moore points out, “The Kid Power launch is proof of the wider concept, that peo-ple right here in the USA can get active and help others.”

Stop HungerAfter graduating from Harding University,

a small Christian college in Arkansas, Moore lived in eastern Uganda for nine years serving

“UNICEF and USAID have wide distribution

networks and established reputations in our target

countries to make sure that MANA ends up in the right hands. They partner with local governments or non-

governmental organizations working on the ground.”

nearly 20 million children under five suffer from Severe acute malnutrition.1

A CHILD DIES DUE TO MALNUTRITION EVERY

8 seconds

IN A YEAR THAT IS

3,942,000most children suffering from Severe acute malnutrition live in south asia and sub-saharan africa.

. Sources: www.unicef.org/media/files/Community_Based__Management_of_Severe_Acute_Malnutrition.pdf

MANA aims to prevent child deaths due to severe acute malnutrition by treating the condition through the production and distribution of ready to use fortified foods.

fortified peanut butter

paste

milk powder

vitamins and minerals

today mana nutrition can produce up to

21,000 kg (that’s 46000 lbs!) each day, enough to feed

15,000children suffering from SAM for

6 weeks

1 pack of mana costs

30 centsto produce and deliver

3 packsof mana a day for

6 weekscan save a starving childs life3

+ +

CENTRAL AMERICA MIDDLE EASTSOUTHEAST ASIA

AFRICA

MEXICO2012 / 0 KIDS2013 / 6 KIDS

HAITI2012 / 25 KIDS2013 / 317 KIDS

UNKNOWN 1

2013 / 36,232 KIDS

PAKISTAN2012 / 0 KIDS2013 / 34,784 KIDS

AFGHANISTAN2012 / 0 KIDS2013 / 10,145 KIDS

CAMBODIA2012 / 0 KIDS2013 / 10 KIDS

BURKINA FASO2012 / 0 KIDS2013 / 1 KID

BURUNDI2012 / 14,000 KIDS2013 / 900 KIDS

CHAD2012 / 2,000 KIDS2013 / 1,125 KIDS

DR CONGO2012 / 45 KIDS2013 / 1,947 KIDS

ETHIOPIA2012 / 2,085 KIDS2013 / 101,834 KIDS

GHANA2012 / 0 KIDS2013 / 21 KIDS

LIBERIA2012 / 0 KIDS2013 / 5,091 KIDS

MALAWI2012 / 0 KIDS2013 / 1,800 KIDS

NIGERIA2012 / 15,000 KIDS2013 / 52,896 KIDS

TANZANIA2012 / 0 KIDS2013 / 1 KID

Exact location unknown. Delivered throughout Africa by the US Agency for International Development.Opposite page photograph by Silent Images. Above graphics not to scale.

nearly 20 million children under five suffer from Severe acute malnutrition.1

A CHILD DIES DUE TO MALNUTRITION EVERY

8 seconds

IN A YEAR THAT IS

3,942,000most children suffering from Severe acute malnutrition live in south asia and sub-saharan africa.

. Sources: www.unicef.org/media/files/Community_Based__Management_of_Severe_Acute_Malnutrition.pdf

MANA aims to prevent child deaths due to severe acute malnutrition by treating the condition through the production and distribution of ready to use fortified foods.

fortified peanut butter

paste

milk powder

vitamins and minerals

today mana nutrition can produce up to

21,000 kg (that’s 46000 lbs!) each day, enough to feed

15,000children suffering from SAM for

6 weeks

1 pack of mana costs

30 centsto produce and deliver

3 packsof mana a day for

6 weekscan save a starving childs life3

+ +

CENTRAL AMERICA MIDDLE EASTSOUTHEAST ASIA

AFRICA

MEXICO2012 / 0 KIDS2013 / 6 KIDS

HAITI2012 / 25 KIDS2013 / 317 KIDS

UNKNOWN 1

2013 / 36,232 KIDS

PAKISTAN2012 / 0 KIDS2013 / 34,784 KIDS

AFGHANISTAN2012 / 0 KIDS2013 / 10,145 KIDS

CAMBODIA2012 / 0 KIDS2013 / 10 KIDS

BURKINA FASO2012 / 0 KIDS2013 / 1 KID

BURUNDI2012 / 14,000 KIDS2013 / 900 KIDS

CHAD2012 / 2,000 KIDS2013 / 1,125 KIDS

DR CONGO2012 / 45 KIDS2013 / 1,947 KIDS

ETHIOPIA2012 / 2,085 KIDS2013 / 101,834 KIDS

GHANA2012 / 0 KIDS2013 / 21 KIDS

LIBERIA2012 / 0 KIDS2013 / 5,091 KIDS

MALAWI2012 / 0 KIDS2013 / 1,800 KIDS

NIGERIA2012 / 15,000 KIDS2013 / 52,896 KIDS

TANZANIA2012 / 0 KIDS2013 / 1 KID

Exact location unknown. Delivered throughout Africa by the US Agency for International Development.Opposite page photograph by Silent Images. Above graphics not to scale.


with his wife as missionaries.“Because my wife is a registered nurse, we

tended to see a lot of people needing health care. Malnutrition was not our reason for being in Uganda, but we certainly saw mal-nourished children. Looking back we saw them every day and many times did not even know it.

Upon returning to the United States, he earned a master’s degree at Georgetown University and then served as a Legislative Fellow and Africa Specialist in the United States Senate. It was there that Moore was exposed to food aid issues and first learned about RUTF.

Moore started MANA with the help of friends Bret Raymond, David Todd Harmon and Brett Biggs. Biggs now serves on the board, Harmon leads the MANA operational team and Raymond championed acceptabil-ity studies and other efforts in Rwanda before

Zenda Douglas is a Greater Charlotte Biz freelance writer.Some images provided by the company.

starting another hunger-related non-profit in Arkansas.

Moore chose Charlotte as the company’s headquarters, relatively close to the Fitzgerald factory. A main consideration was the acces-sibility to a major airport. Moore now lives in Charlotte with his wife and four children.

In the beginning, raising the money was tough, according to Moore. The Halbert Harmon Foundation provided $1 million. The people of Fitzgerald, Ga., wanted the jobs so they backed the effort by assisting on a $2 million loan. The biggest funder was the Children’s Investment Fund in London, which provided $13 million dollars in loans and grants.

MANA is still growing strong. A new con-struction project is in the works will expand their Georgia factory from 35,000 to 50,000 square feet. Production there will double within three years time, according to Moore.

MANA won’t solve the problem of world hunger. But it will help a desperate mother feed her starving child. And to that mother, and that child, that means everything.

“I love my job,” says Moore. “It’s an honor to go to work every day and know we are making a difference. Someday, we hope, the

scientists and the economists and the politi-cians will find a comprehensive solution to the problem of world hunger. And we hope that day comes soon. But until then…there’s MANA.”

MANA Nutritive Aid Products, Inc. dba MANA Nutrition 130 Library LaneMatthews, N.C. 28105Phone: 855-438-6262Principal: Mark Moore, Founder and CEOEstablished: 2009Locations: Headquartered in Charlotte; facility in Fitzgerald, Ga.Employees: 5 in Charlotte; 55 in Fitzgerald, Ga.Business: Nonprofit manufacturer and distributor of ready-to-use therapeutic food to the global marketplace.www.mananutrition.org

3332 Wilkinson Boulevard • Charlotte, NC 28208 • 704-394-0387 • HyattGuns.com

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“I love my job. It’s an honor to go to work every day

and know we are making a difference. Someday, we hope, the scientists

and the economists and the politicians will find a

comprehensive solution to the problem of world hunger. And we hope that day comes

soon. But until then… there’s MANA.”

MANA Nutrition and NetSuite

JP Morgan Chase and MANA Nutrition

21


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YEAR THREE OF ACA FINDS HIGHER UTILIZATION RATES, RISING DRUG COSTS, AND IN-CREASED EMERGENCY ROOM VISITS LEADING FACTORS DRIVING RATE INCREASES

by michael j. solender

How Can We Make Health CareMore Affordable?

HEALTH CARE COSTSHEALTH CARE COSTSHEALTH CARE COSTS

BALLOONING

HEALTH CARE COSTSHEALTH CARE COSTS

2016 marks the third year of the Aff ordable Care Act (“Obamacare”)

and employers, consumers and insurers alike are concerned that the “aff ordable” compo-nent of the health care reform legislation is proving elusive. North Carolina consumers who buy their own health insurance are fac-ing major price increases this upcoming year.

The state Insurance Department has approved rates covering about 610,000 people that will be one-third to one-fifth

higher in 2016. Blue Cross and Blue Shield of North C a rol i n a ( B C B SNC) i s

approved for an average 32.5 percent rate increase, Aetna is approved for an average 24 percent increase, and UnitedHealthcare for an average 20 percent increase.

North Carolina’s increases are among the highest for the 37 states that rely on the Healthcare.gov website, according to government fi gures.

Cost Transparency: Let’s Talk Cost

BCBSNC

ER Alternatives: Let’s Talk Cost

BCBSNC

Uncoordinated Care: Let’s Talk Cost BCBSNC


22

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dramatic increases in prescription drug costs, and increased access to costlier emergency room care.

“We expected that new enrollees would seek care upon obtaining ACA coverage, but that demand was even higher than expect-ed,” Roos explains. “To put that in context, last year in the BCBSNC ACA pool of 400,000 customers, just 5 percent of the pool account-ed for more than $830 million in medical claims. During the same period, we received

Why Are Costs Ballooning?BCBSNC is the state’s only insur-

er with products available in all 100 North Carolina counties. The com-pany is one of four providers in 2016

to off er plans to North Carolina resi-dents through the Healthcare.gov ex-

change. BCBSNC, Aetna (which operates as Coventry Health Care of the Carolinas),

and United Healthcare are joined in 2016 by Humana which will offer plans in the Winston-Salem and Charlotte areas.

Mainly in direct response to higher than anticipated claims data seen during the first half of 2015, BCBSNC did adjust their 2016 ACA rate fi ling with the North Carolina Department of Insurance. They upped their request from an earlier ask of 25.7 percent to an average increase of nearly 35 percent. The increase aff ects rates for individual customers under age 65 with ACA plans both on and off the Exchange beginning January 1, 2016.

“We are working in a volatile environ-ment with high risk,” comments Gerald Petkau, BCBSNC’s senior vice president and chief fi nancial offi cer. “While disappointing, this year’s results are not surprising given the trends we’ve observed throughout the year. Having adequate reserves means we are well-positioned to weather this diffi cult year; the company is strong, well-capitalized and well positioned for the future.”

John Roos, senior vice president, Sales, Marketing & Communications, says that a number of factors were driving BCBSNC’s rate increase request including an unhealth-ier-than-projected mix of subscribers, spend-ing that did not level out as anticipated,

“WE EXPECTED THAT NEW ENROLLEES WOULD SEEK CARE UPON OBTAINING ACA COVERAGE, BUT THAT DEMAND WAS EVEN HIGHER THAN EXPECTED. TO PUT THAT IN CONTEXT, LAST YEAR IN THE BCBSNC ACA POOL OF 400,000 CUSTOMERS, JUST 5 PERCENT OF THE POOL ACCOUNTED FOR MORE THAN $830 MILLION IN MEDICAL CLAIMS. DURING THE SAME PERIOD, WE RECEIVED $75 MILLION IN PREMIUMS FROM THAT GROUP—LESS THAN 10 PERCENT OF THEIR MEDICAL CLAIMS.”

Transparency: Let’s Talk Cost

BCBSNC

23


https://www.youtube.com/embed/qZHlakNWub4?rel=0&autoplay=1

in the second year; and second, that health care costs would level out as pent-up demand for services minimized.

“Based on our data, neither expectation is proving true. Our claims and expenses are higher than our premiums and we need to take steps now to protect the sustainability of plans for our customers over the long term.”

Unsustainable LossesAccording to Petkau, BCBSNC experienced

operating losses in their ACA business of $123 million dollars in 2014. “This is an unsustain-able fi gure,” he says.

BCBSNC’s recent claims data shows a sharp increase in spending in medical servic-es in 2015 compared to 2014, fueling the ne-cessity for the rate increase request.

Additionally, BCBSNC’s recent claims re-view found some significant unfavorable trends. First, health care spending among ACA customers increased each month, up 30 per-cent in January through June of this year com-pared to the fi rst six months of 2014.

Second, there was a 27 percent increase in the number of emergency department visits in January through June of this year compared to the same period of 2014. Many of these were for conditions that could have been better treated in a diff erent, less expensive care set-ting, such as urgent care.

Third, drug spending increased 33 percent in the fi rst half of 2015 compared to January through June of 2014. This makes prescription drugs the fastest-growing component of medi-cal spending in BCBSNC’s ACA business.

$75 million in premiums from that group—less than 10 percent of their medical claims.”

Like other insurers in the state and nation-wide, BCBSNC is still in the learning phase re-garding the ACA, what’s working and what still needs additional focus.

“The industry generally had two expec-tations of ACA customers,” says Roos. “First, that we would see healthier customers enroll

An additional, somewhat hidden cost borne by the insurer, are the ACA customers who use their benefi ts early and then drop coverage or stop paying premiums. Other cus-tomers who cancelled their plans were among the healthiest customers, those who had not fi led any claims. Lacking a balance of healthy and sick customers is yet one more factor fi g-uring into rate increases.

BCBSNC’s chief actuary Patrick Getzen points out that the ACA continues attracting people who had trouble getting insurance in the past: sicker, older customers who tend to run up medical costs. Getzen says 94.2 per-cent of BCBSNC’s ACA customers qualifi ed for fi nancial subsidies and nearly a fi fth of them discontinued coverage after several months.

(l to r)Gerald PetkauSr. Vice President and CFOJohn RoosSr. Vice President, Sales, Marketing & CommunicationsBlue Cross and Blue Shield of North Carolina

94.2 PERCENT OF BCBSNC’S ACA CUSTOMERS QUALIFIED FOR FINANCIAL SUBSIDIES AND NEARLY A FIFTH OF THEM DISCONTINUED COVERAGE AFTER SEVERAL MONTHS. MOST OF THESE CUSTOM-ERS PURCHASED A PLAN, PAID THEIR INITIAL PREMIUM, USED COSTLY HEALTH CARE SERVICES, THEN DROPPED THEIR COVERAGE.

HEALTH CARE CLAIMS ON THE RISE

• Prescription drug costs for ACA customers increased signifi cantly between 2014 and 2015 – more than any other medical cost category, including doctor visits, ER visits and hospitalizations.

• ACA customers new to BCBSNC in 2014 and 2015 are driving the majority of increased costs. Many receive ongoing medications for chronic conditions like diabetes and arthritis and are expected to stay on these medications.

• The use of high-cost drugs is more frequent among ACA customers. For example, ACA customer spending is twice as high for expensive hepatitis C drugs, 25 percent higher for mental health prescriptions and 18 percent higher for diabetes medications, compared to other customers.

• ACA customers who enrolled in 2014 went to the ER more this year than last.• ACA customers who enrolled in 2015 are visitng the ER even more than their 2014

counterparts.


envisioned low-income people receiving cov-erage through Medicaid, it does not provide financial assistance to people below poverty for other coverage options. As a result, in states that do not expand Medicaid (such as North Carolina), many adults will fall into a “cover-age gap” of having incomes above Medicaid

Defined as care delivered yet not reim-bursed to the provider, uncompensated care is frequently due to the uninsured status of the patient. Providers seek to recoup these loss-es, often by looking to insurers to pay high-er rates for services. The associated costs get calculated into premium rates by those who purchase coverage in commercial and public marketplaces.

Nearly 40 percent of North Carolina’s un-insured are eligible for Medicaid or subsidized insurance yet have not enrolled, according to a recent Kaiser Family Foundation report. The report showed 289,000 people or 25 percent of the 13 million uninsured had not enrolled through ACA exchanges.

The report indicated because the ACA

“Most of these customers purchased a plan, paid their initial premium, used costly health care services, then dropped their cover-age,” he remarks. “This is an unintended con-sequence of the way the law is written.”

North Carolina has the fourth highest en-rollment level under the ACA behind only Texas, Florida, and California according to the Centers for Medicare & Medicaid Services. Statewide enrollment saw 459,714 North Carolina residents enrolled under the ACA as reported in June.

“As far as projected rate increases across the nation, North Carolina is certainly not an outlier,” says Petkau.

The New York Times reported health insur-ance companies across the nation are seeking increases between 20 and 40 percent for 2016.

Minnesota alone saw four separate in-surers seek increases of 50 percent or more. Fluctuations in rate requests by states are attributed to differences in population de-mographics, price of services, local practice patterns and the population of uninsured.

Uncompensated CareUncompensated care is another contribut-

ing factor to rate increases.

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eligibility limits but below the lower limit for marketplace premium tax credits.

More and better education may help ad-dress the inherent contradiction between the high subsidy rate and stubbornly high rate of uninsured.

Petkau notes that while income-based subsidies provided by the ACA help defray insurance costs for persons with incomes between 100 percent and 400 percent of federally established poverty levels, many residents eligible for coverage are not ob-taining it.

The National Center for Health Statistics

reported during ACA’s first year, North Carolina’s uninsured rate fell 13 percent in 2014.

Estimates indicate nearly 90 percent of North Carolinians covered in 2015 got sub-sidies. Yet according to a recent survey con-ducted by the Commonwealth Fund, a private quality health care advocacy group, aff ordabil-ity remains a top reason amongst people seek-ing health care coverage today.

Their research found among those adults who said they did not enroll because they could not fi nd an aff ordable plan and did not enroll through a diff erent source, more than half had incomes that made them eligible for subsidies. It is unclear whether the subsidies are insuffi cient across income levels to help all those eligible enroll or whether there is a lack of clear information about the subsidy assis-tance and the actual net costs of insurance to potential enrollees.

Transparency—Managing CostsBCBCNC is working hard to underscore

transparency at all levels in the health care equation, confident that better informed members make better and more cost eff ective decisions regarding their health care.

“Price transparency is tremendously im-portant to us and we will be even more trans-parent in 2016,” says Roos. “We recognize health insurance and health care can be com-plicated. We’re working to provide resources to make plan and health care service shopping and provider quality information easily acces-sible to our members.”

Health care consumers are well-served to evaluate not only premium rates but co-pays, deductibles, drug coverage and quality of care information regarding providers and facilities they may access. To that end, BCBSNC is also better arming their customers, and the gener-al public, with information and tools available on their website to help them make better and more informed choices about their care.

“We’re working to take the mystery out

• Government offi cials and the insurnce industry knew that the ACA woudl bring a surge of people seeking needed care in 2014. However, the expectation that the healthier ACA customers would enroll in 2015 has not proven true.

• Health care claims are not leveling out. Many ACA customres have chronic conditions, such as heart disease and diabetes, that contribute to higher health care costs.

• The current health care spending trend and mix of customers is not sustainable. Without suffi cient rates, we will not be able to cover the cost of services that our customers rely on.

GAP IN COVERAGE FOR ADULTS IN STATES NOT EXPANDING MEDICAID UNDER THE ACA


26

Advantage plan and its narrow-network Blue Value plan.

BCBSNC customers can access a more spe-cialized tool through Blue Connect, the com-pany’s new customer portal. The customer tool includes quality information as well as more specialized cost estimates based on a customer’s specifi c health plan.

Plan Changes for 2016BCBSNC will continue to off er products in

all of the state’s 100 counties. Blue Advantage and Blue Select products will no longer be available in 16 counties, including the Triangle

of health care by providing cost information about more than 1,200 procedures,” touts BCBSNC President and CEO Brad Wilson. “This information will help consumers get more bang for their health care buck.”

Roos points out, “You can get a printout that will provide you with what your pol-icy will cover as well as what your co-pay and deductible will be for any of the listed procedures.”

With the new Web-based tool, consumers can easily compare the cost of common proce-dures— an important factor in ensuring they get the best value for their health care dollar. As an example, the amount a customer might

pay for a knee replacement in the Triangle can vary by nearly $15,000 depending on which hospital the customer chooses.

Many consumers believe that the high-est cost facility is the highest quality facility, but that’s often not the case, Roos points out: “We know that our customers want the high-est quality health care, but like any purchase they make, they don’t want to pay more than they have to. Our tool allows them to make informed decisions about health care just as they would any other major purchase.”

The cost comparison tool, bcbsnc.com /healthcarecost, enables consumers to com-pare cost of common health care procedures at hospitals and other health care provid-ers based on BCBSNC’s broad-network Blue

and Charlotte regions.Customers in these areas will have the op-

tion to choose a lower-cost, limited network

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“PRICE TRANSPARENCY IS TREMENDOUSLY IMPORTANT TO US AND WE WILL BE EVEN MORE TRANSPARENT IN 2016. WE RECOGNIZE HEALTH INSURANCE AND HEALTH CARE CAN BE COMPLICATED. WE’RE WORKING TO PROVIDE RESOURCES TO MAKE PLAN AND HEALTH CARE SERVICE SHOPPING AND PROVIDER QUALITY INFORMATION EASILY ACCESSIBLE TO OUR MEMBERS.”

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which contributes to higher quality care.BCBSNC is also working to make more af-

fordable, convenient care options and alterna-tives to costly emergency room visits. These options include urgent care centers and 24/7 staff ed nurse advice hotlines to help custom-ers choose the right treatment options.

BCBSNC uses its experience and purchas-ing power to negotiate discounts on its cus-tomers’ behalf so they don’t pay more than they have to. The company has on-site repre-sentatives at hospitals throughout the state to directly answer questions and provide sup-port to customers.

Roos points out that establishing and maintaining a healthy lifestyle are arguably the fi rst, and best, line of defense against ill-ness. To that end, BCBSNC continues into 2016 with their very enthusiastic Live Fearless cam-paign inspiring North Carolinians to get in-spired to take action to work hard, play hard and live life to the fullest.

The insurer has a number of programs including nutrition counseling, fi tness dis-counts, community gardening activities, and a network of greenways and trails contribut-ing to a healthier state.

With nearly two years of ACA experience under their belt, insurers and consumers con-tinue to look for market stabilization and bet-ter, more aff ordable health care. Clearly, there is still much work to be done.

plan with their preferred health system of choice through Blue Local and Blue Value. These plans have been a popular and aff ord-able choice. Nearly 60 percent of customers in the Triangle and Charlotte areas are currently on a lower cost plan.

“North Carolinians are more actively in-volved in health care decisions—including choosing a health plan—than ever before,” adds Roos. “Off ering the right balance of cost and plan design for consumers is vital to our business.”

Those searching for silver linings for the future of ACA and the state of health care are not without hope. Better informed consumers can make better choices about their health care and drive an increasing industry movement to-wards better, not simply more health care.

Accountable Care Organizations are one example employed by BCBSNC where doctors and hospitals work together as a team to deliver high quality effi cient, results-based care. Eff orts to reduce medical errors are returning multiple benefi ts, notably patient safety. Here hospitals are incentivized in reducing their error rates

Health insurance works by having a large pool of customers paying in. So when a fraction of that pool drops out, it’s no big deal since there are a lot of people left, correct? It turns out that it actually is a pretty big deal. These numbers matter because the people who drop are no longer paying into the system. It puts a ripple in the insurance pool by reducing the amount of money paid in to offset the cost of people who need a lot of expensive medical care. And it makes predicting future insurance rates even more challenging. For BCBSNC, a higher-than-anticipated number of customers not paying premiums or dropping coverage has introduced volatility to the rate-setting process, and contributed the average premium increase of 34.6% for 2016 (for individuals under the age of 65 with an ACA plan).

“NORTH CAROLINIANS ARE MORE ACTIVELY INVOLVED IN HEALTH CARE DECISIONS—INCLUDING CHOOSING A HEALTH PLAN—THAN EVER BEFORE. OFFERING THE RIGHT BALANCE OF COST AND PLAN DESIGN FOR CONSUMERS IS VITAL TO OUR BUSINESS.”

HERE’S WHAT HAPPENS WHEN 60,000 PEOPLE DROP THEIR INSURANCE COVERAGE

CEO Brad Wilson of BCBSNC on Carolina

Business Review


28

Michael J. Solender is a Greater Charlotte Biz freelance writer.Charts, images and information provided by BCBSNC.

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OF INTEREST: Spotlight on N.C. Legislative Activity

WHY ARE HEALTH CARE PREMIUMS STILL BALLOONING?NORTH CAROLINA’S LEGISLATIVE DEBACLE CONTINUES TO HIKE HEALTH CARE PREMIUMS

When Blue Cross Blue Shield of North Carolina an-nounced a 32.5 percent average rate increase in health care premiums for 2016, it came as no surprise given the losses they had accumulated since the implemen-

tation of the Aff ordable Care Act (ACA). They indicated that “pent-up demand”—new ACA subscribers’ previously unmet health care needs—far exceeded their expectations.

According to John Roos, Sr. V.P. of Sales, Marketing & Communications, “In the BCBSNC ACA pool of 400,000 custom-ers, just 5 percent of the pool accounted for more than $830 million in medical claims. During the same period, we received $75 million in premiums from that group…less than 10 percent of their medical claims.”

Even with federal reimbursement of losses from subsidized poli-cyholders, the losses are extreme and unsustainable. Adding insult to injury, BCBSNC also witnessed a 33 percent increase in drug costs during that same period.

This is the third annual renewal period for the ACA, yet there con-tinue to be signifi cant premium increases and non-stop escalation of health care costs. Expectations for leveling of costs have not been realized even though more individuals are obtaining coverage and consumers are beginning to shop for health care more aggressively.

Unfortunately, the health care quagmire is not being helped by the continuing battle between Republicans and Democrats waged on the federal and state levels with no consensus about confronting costs and/or expanding coverage.

Since the implementation of the ACA, North Carolina has refused to expand Medicaid and only recently opted to set up its own priva-tized Medicaid system—which has yet to be established. As a result, the impact of people receiving uncompensated care continues to grow, thereby shifting costs on to premium payers.

In North Carolina, insurance commissioner Wayne Goodwin can be given credit for battling rising homeowners’ insurance rates and pushback against hikes in auto insurance rates. He is widely laud-ed with delivering some of the lowest rates in the country to North Carolina policy holders.

With the same tenacity, commissioner Goodwin says he was hop-ing to expand competition for health care and had identifi ed at least two additional companies to participate in a state-based exchange and was confi dent of a handful more, boosting competition and push-ing premiums downward, or at least constraining premium increases.

However, he has not been allowed. A 2013 law passed by the Republican-controlled legislature actually blocked him from taking a tougher line on rates and forbid the offi ce from off ering advice on how to shop for more aff ordable plans.

Furthermore, the N.C. Departments of Insurance and Health and Human Services were barred from expanding Medicaid and from setting up a separate North Carolina Health Exchange, and the legislature or-dered them to, in fact, return the $74 million in federal aid that had been allot-ted to support the creation of a state ex-change and to provide support to people choosing health care coverage.

“I’m frustrated, angry and sad that…our offi ce is prohibited from acting in ways that I expect and the people expect. We can do better, as a state we can do bet-ter,” says Goodwin, a statewide-elected Democrat.

Ned Barnett of The Raleigh News & Observer has commented, “For Republicans, the messier and more expen-sive ‘Obamacare’ gets in North Carolina, the better. After all, they said it would be a ‘train-wreck,’ and in North Carolina they did all they could to bend the rails.”

The legislature’s resistance to all aspects of the ACA re-sults in increased premiums for North Carolinians to cover (i) a 4 percent tax for using the federal exchange that might have been lower in a state exchange; (ii) higher rates to cover sicker and more expensive patients in the ACA pool that would oth-erwise have been covered by a Medicaid expansion; and (iii) increased costs for hospitals because of the lack of expansion.

Goodwin maintains that cooperation in Congress could fi x some of the ACA’s fl aws and the legislature could reduce costs through Medicaid expansion. No state exchange, no state insur-ance department advocacy, no Medicaid expansion, Goodwin says, have “put us in North Carolina, in many respects, at ground zero for the worst possible result.”

On the other hand, some support the state’s decision against expanding Medicaid, citing other state that did expand Medicaid and are now experiencing rising health care costs that will eventually exceed federal reimbursements.

Businesses may want to provide coverage, but unpredictable premiums that have swollen beyond aff ordability make it increasingly diffi cult, and in some cases prohibitive, to do so. Unfortunately, there is little progress for premium payers. So the battle over health care continues, with no end in sight.

against expanding Medicaid, citing other state that did expand Medicaid and are now experiencing rising health care costs that will eventually exceed federal

Businesses may want to provide coverage, but unpredictable premiums that have swollen beyond aff ordability make it increasingly diffi cult, and in some cases prohibitive, to do so. Unfortunately, there

29

BuildingYOURBeverage

BuildingYOURBeverage

BRA

ND

S

People Want!

by arden mclaughlin

N orman George sat among his Coca-Cola Bot-tling Co. Consolidated peers antsy—ready for a change. He’d been with the company for several decades. He loved the complexities

of the beverage industry; that every day brought a new challenge and new reward. He also appre-ciated the Christian-based leadership of J. Frank Harrison III, chairman and CEO of the Charlotte-based company.

But, his entrepreneurial spirit needed to be fed in a new way. So, he decided to toss an idea to the board.

“At the time, I was wondering how unknown beverage ideas bring their fl avors to life,” George remembers, leaning back in his chair. “For me, Coke would always be at the top of the list. But, I knew that people’s tastes were expanding, and I thought the company had an opportunity to expand with them.”

orman George sat among his Coca-Cola Bot-tling Co. Consolidated peers antsy—ready for a change. He’d been with the company for

BYB Brands Creates

and Sells

BRA

ND

S

31


Tum-E Yummies is a line of great-tasting, non-carbonated, fruit-fl avored water drinks. They are loaded with 100 percent daily value vitamins B6, B12 and C. Each bottle has 50 calories, 13 grams of sugar, and no sodium. Tum-E Yummies are packaged in a 10.1 oz. bottle with a sport cap and are available in fi ve fl avors (Very Berry Blue, Orange-arifi c, Fruitabulous Punch, Greentastic Apple, and Sour-sational Raspberry).

Within in three years, Tum-E Yummies grew into 85 percent of the Coca-Cola Bottling direct store delivery markets. In 2009, when many were having challenges, BYB’s Tum-E Yummies was succeeding. Tum-E Yummies is now in more than 100,000 retail outlets across the U.S.

“Tum-E Yummies was cash-positive after three years and has been every year since,” George remarks. He hails his hard-working team for the success; many were selling Tum-E Yummies out of personal vehicles, in parking lots, basically anywhere and everything to build a product in which they believed.

The brand has also launched a multi-pack line extension sweetened with a blend of real sugar and stevia. The additional blend features the same vitamin-packed ingredients as the company’s original product, while being re-sponsive to the growing demand for alterna-tive sweeteners.

Beverages That SucceedGeorge’s pride in his team has helped

them reach the shared destination that com-pletes the vision of BYB. The company’s desti-nation is to “Be leaders and win in the marketplace.”

With the agreement of the board, George began the process of creating BYB Brands as a division within the company dedicated to brand creation for new beverages with George as general manager.

“I wasn’t aiming for the role, but I guess he who has the idea has to make it happen, right?” he chuckles, recalling the swift transi-tion in his career.

In the last 10 years, George and the BYB Team have launched two major beverage lines and elevated the company to new ownership and a wider distribution base.

Building a BrandThe first brand created by BYB was

Cinnabon Lattes. George, with his creative passion for business, saw an opportunity in beverages that started as niche.

Bottled coff ee was a new concept and pop-ular with a wide demographic, so BYB cut a license deal with Focus Brands, Cinnabon’s parent company, to build the sweet and dec-adent fl avor of the world-famous Cinnabon rolls into a premium ready-to-drink coff ee.

Cinnabon Lattes were in the marketplace for about a year and a half while bottled lattes were all the rage; however, this brand could not gain national consumer traction and the BYB team decided to retire the product and move on.

“The beverage industry is tough,” George affi rms, shaking his head. “I’ve been in it more than 30 years and I continue to marvel at what works and what does not.”

Over the years, George’s team built and launched a multitude of beverages includ-ing Country Breeze and Bazza Teas, Bean and Body coff ee, Fuel in a Bottle, and Tum-E Yummies. Of these, only Tum-E Yummies re-mains in the marketplace.

In fact, Tum-E Yummies is growing in reach. The low-sugar, fruit-fl avored beverage is No. 1 in retail dollar sales in the convenience retail channel across the U.S. (AC Nielsen) in the Juice Drink Category and now expanding into grocery stores.

Tum-E Yummies hit the market in February 2006. George and his team saw an opportunity in low-calorie beverages for chil-dren. With a marketing plan targeted specifi -cally to parents and caretakers who want to treat their children with a low-sugar drink, his team began formulating Tum-E Yummies.

Creating a beverage that succeeds in the marketplace takes a balance of art and science. Choosing diff erent drinks, fl avors and ideas requires a variety of tactics: evaluating cate-gories and consumer needs not being met or with few choices in the space, attending bev-erage entrepreneurial shows to see emerging products, and entertaining very small bever-age upstarts interested in investments or pur-chasing from BYB.

Once a beverage is in the BYB wheel-house, the company begins to study its com-

petitive landscape. They need to under-

stand the

VEB Brand Building Phases

“The best potential product in the world

will not overcome picking the wrong

distribution partner. Not all products

are suitable for the big brand beverage

companies. Some are better served through more nurturing routes that will allow them to build to scale. It’s for

that reason that BYB exists.”

Norman C. George General Manager BYB Brands, Inc.(Part of Venturing and Emerging Brands of Coca-Cola North America)

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petitive landscape. They need to under-

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32

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targeted consumer base for the product and the growth potential in the marketplace.

The beverages are then packaged and branded for testing in consumer focus groups throughout the country. BYB tests things like the concept and packaging fi rst, i.e., no brand name is attached to a beverage when it hits the senses of the consumer focus group. The idea is to gather as much information as possible regarding the consumer’s willingness to pur-chase it before branding it.

However, George knows that testing, re-search and data analysis can only get a bever-age so far in this highly competitive industry.

“The best potential product in the world will not overcome picking the wrong distri-bution partner,” he explains. “Not all products are suitable for the big brand beverage com-panies. Some are better served through more nurturing routes that will allow them to build to scale. It’s for that reason that BYB exists.”

George points out that building the next billion-dollar brand takes more than tenaci-ty. “It takes an understanding of the industry, the courage to take risks, the grace to accept failures, and a leadership ability that embrac-es success while exuding humility,” a talent that he comments is almost lost in the busi-ness world today.

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who he is and what kind of people he wants to lead. He emphatically states, “I have passion every day I get up. I enjoy the industry and its complexities. If you have a good product and good people who believe in the product, you will do great.”

“Hiring is the most important decision you will make,” he declares. His hiring pro-cess has always been a team activity from the very beginning.

The process centers around the mission of BYB Brands: To create and sell brands people want! It then leads

into values which include: innova-tion, passion, undying optimism,

and respect. During interviews, candidates are asked situational questions in an effort to glean how they have responded to similar situations in prior work and life experiences.

Through the interviewing process, George and his team begin to assess how a candidate will respond to another core part of the BYB culture: The “Gotta Do’s.” Upon talking about the “Gotta Do’s” George presents a freshly lam-inated document listing them to demonstrate how serious he is about these 14 actions that each person on his team has “gotta be willing to do.”

The actions include: Always do the right thing; be flexible and fast; take action; live within our means; have fun and demonstrate a sense of humor.

BYB Brands will continue to move down the path of trying to answer consumer need states that haven’t been met yet, George says.

“We’re innovators, and we’ve got to think differently,” he says. “We’ve got a different mission that has a different feel to ensure that we’re quick, nimble and easy to do business with. We’ve got to be quick to respond.”

Creating a CultureGeorge admits the first 18 months were

tough. Through the brands launched and many more ideas considered, he discovered success has a short memory. He’s learned from mistakes made, but has not dwelt on them. And, he’s surrounded himself with a strong team.

He says his folks hustled for their suc-cess because they believed in the brands they were creating. But even more than belief in the brands, they believed in the culture being modeled by the leadership team.

George readily acknowledges he knows

In fact, Tum-E Yummies is growing in reach. The low-

sugar, fruit-flavored beverage is No. 1 in retail dollar sales in

the convenience retail channel across the U.S.

(AC Nielsen) in the Juice Drink Category and now expanding into grocery stores.


34

George says that to succeed, potential team members have to have muscle and expe-rience. They have to be willing to share expe-riences in the field—be book smart and street savvy. George also stresses the importance of surrounding one’s self with different people who have different experiences from differ-ent walks of life.

Team members have bought into George’s vision and “Gotta Do’s” readily. What started with George and his idea has grown to 40 full-time team members stretching from San Diego to Charlotte to Boston.

George emphatically attributes their suc-cess and growth to the culture. “People look at your feet, not at your mouth,” he says repeat-edly. “Culture is a huge part of who we are. I’m so proud of our folks.”

Expanding HorizonsBYB Brands success isn’t limited to the

brands it has built. It recently was acquired by The Coca-Cola Company in a stock pur-chase, becoming the newest addition to the Venturing and Emerging Brands (VEB) busi-ness unit. BYB Brands now finds itself in unit with such illustrious brands as Honest Tea, Hubert’s Lemonade, Hansen’s Natural Soda, and ZICO Coconut Water.

Coke’s VEB unit was created in 2007 to identify and build the next generation of billion-dollar brands in North America. VEB breaks down the players in the bev-erage market into one of five phases of de-velopment based on company revenues: Experimentation (less than $10 million), Proof of Concept (between $10 million and $50 mil-lion), Pain of Growth (between $50 million and $150 million), Scale to Win (between $150 million and $350 million), and Mainstream (billion-dollar brands).

Rather than waiting until a company breaks into the mainstream to consider an investment or acquisition, VEB identifies in-teresting companies earlier along the growth curve. Specifically, VEB targets companies that have reached the Proof of Concept phase, since they have already beaten the odds and established themselves in the marketplace.

VEB’s strategy is to take a minority interest in the company first and, then, if the compa-ny continues to be successful, The Coca-Cola Company might acquire 100 percent of the business.

Only 3 percent of all beverage brands reach VEB’s Proof of Concept phase, and George and his team can take the credit for boosting BYB’s Tum-E Yummies into the inner circle.

“We’re very excited about our new owners,

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grocery stores as well.With change in ownership comes a new

opportunities for BYB, too. In September 2015, the BYB teams began helping support Peace Tea. Bottled teas are the top product for the late teen to early 30s demographic and second overall for most-consumed non-alcoholic beverages.

Peace Tea is marketed as the connector of people, places and things which inspire, encourage and promote peace. It comes in six fl avors and is only 50 calories per serv-ing, with no high fructose corn syrup and no

artifi cial colors.George knows working on Peace Tea is an

exciting moment for his team. It allows them to leverage previous learnings to lead to more success.

George says he is looking forward to con-tinuing the integration with Coca-Cola North America’s Venturing and Emerging Brands business unit, and to support new opportuni-ties while experiencing compounded growth for the Tum-E Yummies and Peace Tea brands.

George enjoys building…building brands…building divisions…building cultures. It’s like-ly, within the next decade, he’ll build the next billion-dollar beverage. It’s also likely he’ll give

Arden McLaughlin is a Greater Charlotte Biz freelance writer.Some images provided by the company.

and equally grateful for the incredible support of the Consolidated board,” George says, with more than a little pride.

Being part of the larg-er entity will extend BYB Brands Tum-E Yummies’ reach into grocery stores. It’s currently No. 1 in con-sumer sales in the youth drink category in the con-

venience retail category. George believes this top rating, along with the nurturing environ-ment with VEB, will bring strong standings in

all the credit to his BYB teammates as he sits back in his chair and enjoys a cool beverage of his own design.

But then, maybe, he’ll throw back an ice-cold Coca-Cola in celebration of the brand’s 100th anniversary of its patented “hobbleskirt” bottle.

“We’re innovators, and we’ve got to think differently. We’ve got

a different mission that has a different feel to ensure that we’re

quick, nimble and easy to do business with.

We’ve got to be quick to respond.”

BYB Brands, Inc.(Part of Venturing and Emerging Brands of Coca-Cola North America)2101 Rexford Rd., Ste. 236ECharlotte, N.C. 28221Phone: 707-319-0390Principals: Norman C. George, General Manager; Erin Kelly, V.P. Marketing; Michael Rigtrup, V.P. U.S. West Region; Kyle Thomas, V.P. U.S. Central Region; Brad Keinsley, V.P. U.S. East Region; Gerry Vetter, Director of Supply Chain/ProcurementIn Business: 10 years (purchased August 2015; created by previous owner Coca-Cola Bottling Co. Consolidated)Employees: 40Current Brands: Tum-E Yummies; also supports Peace TeaBusiness: Incubation unit, founded by Coca-Cola Bottling Company Consolidated, is now part of Coca-Cola North America’s Venturing and Emerging Brands (VEB) business unit, for brand creation.www.tumeyummies.comwww.bybbrands.com


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Content contributed by Linda and Ira Bass of IB Media LLC, an advertising media planning and placement firm built using the strategic power of LinkedIn to serve agencies and marketers with a targeted approach to reaching their customers. For more information, please contact Ira Bass at [email protected] or 704-989-3790. Learn more at www.IBMedia.biz or www.LinkedIn.com/company/IB-Media-LLC.

24/7 PAINLESS NETWORKING USING LINKEDIN GROUPS TARGETING EXACTLY WHO TO MEET

dropdown list on the left. Then type in your keywords or group name to search. Once you receive your search results, you may refine your search using the checkboxes on the left; or

Move your cursor over Interests at the top of your homepage and select Groups. Select the Find a group link on the right side of the page. Type in your keywords or group name to Search.

Is A Group Right For You? Find out by clicking on a group’s About tab. Here you’ll find group

rules, a description written by the group’s owner, and the group own-er’s name with a link to their profile and when it started. You will also see which of your 1st level connections are members.

The Two Ways to Join a Group1. Click “Join” on the group Discussions page or anywhere you see the button.2. Respond to an invitation from a group member or manager.

Strategy for Joining a GroupIt is important to join and participate in groups where your tar-

get audience can be found. Too many people only join groups within their industry and their peers. For example, a career coach could join a peer group such as the International Coach Federation (61,000 mem-bers), a job seekers group such as Job Posting Group (318,000 mem-bers), a local business group such as the Greater Charlotte Biz group (665 members), and an Alumni group such as Duke University Alumni Network (29,000 members).

By strategically selecting your 100 groups, you now have the abil-ity to search through the group members to find valuable prospects. This is accomplished using LinkedIn’s Advanced Search tool avail-able to all members.

Participation in Groups Monitor the conversation and interject and contribute to the discussion. Post news and content that is relevant to the group. Message members of the group without even being directly con-nected to them. Never sell. Educate, communicate and connect instead. This is the essence of social selling.

LinkedIn groups has the potential to expose your profile to hun-dreds of thousands of people within a short time. This would never be possible by attending networking groups. Join 100 today.

Happy networking!

For some, networking events stand for opportunity, relation-ship and business development and referrals. For others, just the thought of attending networking events is overwhelm-ing; it seems impossible to target who they need to meet.

LinkedIn has come to your rescue! There are over 3 million groups on LinkedIn. Essentially, groups are virtual networking events that are available 24/7. They may be local, regional, national and interna-tional in scope. Their subject matter covers almost every conceivable industry in existence. Best of all, you can attend, contribute to, and participate in these virtual networking events from the comfort of your home or office at any time.

LinkedIn allows you to join up to 100 groups. We suggest you bal-ance out your 100 to include a variety of groups such as: industry, local, regional, national, international, alumni and personal interest groups. At any time you may decide to leave one and join another. Some require the approval or invitation by the group manager before you are accepted into the group to make sure you meet their mem-bership criteria.

LinkedIn Group ClassificationsIn an effort to keep the groups free of spam and allow for easier

navigation, LinkedIn recently changed the classifications to Unlisted and Standard.Unlisted Groups Unlisted Groups will not show up in search results, Only the group’s owner and manager can invite members to the group.

Standard Groups Standard Groups will show up in search results; Any member can invite any of their 1st degree connections to join.

How to Find GroupsLinkedIn has made finding groups easy. You may do so by search-

ing for groups from the Groups You May Like page or the Search field at the top of your homepage. Here’s how:

In the search box at the top of any page, select Groups from the

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Empowering People, Powering Success!

S hared cultural values—strong work ethic, great company culture, and unsurpassed ser-vice for clients—are what propelled the union

of three regional staffing firms to expand CRG, a staffing and consulting firm with more than

20 years’ experience in the Triad, Triangle and Charlotte markets.

The firm has leveraged its distinctive strengths, recently completing a branding

overhaul, and is poised for expansion across the South-east with a model that gives top talent a stake in their office’s market success.

CRG Leverages Staffing Strengths

by gene stowe

Jason Heller, a veteran of the staffing industry since 1998 and presently CRG vice president of mergers and acquisition and sales, is credited with corralling the talents of Edmund Walker of W2 Financial, Christiaan Militello and Dianne Gold of Professional Computer Resources (PCR), and Tim Sessoms of ComputerNet Resource Group in High Point, to form a powerhouse staffing firm.

39


Heller says CRG aims to reach $30 million next year and $50 million in fi ve years. The combined fi rm has both a Charlotte offi ce and High Point offi ce covering the Charlotte, Triad and Triangle markets, and plans to expand to Raleigh, followed by Washington, D.C., Tampa, and Atlanta as early as 2017.

Leading an Evolving IndustryThe staffing industry, both permanent

placements and temporary contracts, has evolved signifi cantly in recent years, with jobs reaching to high-paying levels.

and this business much the same way I did,” continues Sessoms. “I felt like all of them were folks of good character. I got excited about the concept: I looked around the table and thought this could be a great combination.”

Sessoms remains CEO of CRG, Heller is senior vice president of mergers, acquisitions and sales, Walker is vice president of tempo-rary operations, Militello is vice president of IT search, and Dianne Gold, is director of human resources.

The partners spent last year merging their staff s, policies, procedures, and software. This year, with the integration complete, the com-pany has added 19 new clients, for a total of 46 and expects to reach $26 million in revenue, including $20 million in IT alone, along with a stable of over 300 consultants.

“Our candidate databases and CRM’s were combined and we now have access to over 100,000 candidates with 90 percent of them within 50 miles of either offi ce,” touts Sessoms. “That along with keeping 95 percent of the customers since the merger has put CRG on a trajectory of double digit growth.”

In addition to IT, CRG focuses on account-ing and fi nance as well as human resources ad-ministration, including executive searches for global directors, CIOs, CFOs, and controllers. It keeps a diverse portfolio rather than relying on the large banking industry in the area.

“Ideally we’re looking for the producer who’s tired of working for the large national fi rm,” Heller says, explaining that the arrange-ment combines the most desirable qualities of entrepreneurship and big-company affi liation. “They can join our company and grow to the next level. That’s how we envision growing this company.”

“The idea was to put together a group of companies as a rollup, allowing for greenfi eld opportunities as well as dynamic growth, as well as being able to do acquisitions,” de-scribes Sessoms, who had turned down ear-lier overtures to join the initiative until they gathered at Heller’s kitchen table in Cornelius one morning in November 2013.

“I went there, we talked about it, I met the other people and realized it was a quali-ty group of people that looked at this industry

Principals of CRG (l to r): Dianne Gold, Director of Human Resources (previous owner of PCR); Christiaan Militello, V.P. IT Consulting (previous owner of PCR); Tim Sessoms, President and CEO (previous owner ComputerNet Resource Group); Jason Heller, Senior V.P. of Mergers & Acquisitions and Sales (previous owner of Mobius Search); and Edmund Walker, V.P. of Staffi ng Operations (previous owner of W2 Financial).

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“When you say ‘temporary,’ most people think of that entry-level admin, somebody on a ladder in a warehouse. Temporary includes a hundred-dollar-an-hour IT professional or accounting professional. We’ve got people out in the fi eld at over $200 an hour.”


40

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“When you say ‘temporary,’ most peo-ple think of that entry-level admin, some-body on a ladder in a warehouse,” says Heller. “Temporary includes a hundred-dollar-an-hour IT professional or accounting profes-sional. We’ve got people out in the fi eld at over $200 an hour.”

Workers recognize that drastic economic changes have ended their parents’ and grand-parents’ expectations of career-long stability at one company, ending with a gold watch and pension.

“In corporate America, there is no more se-curity,” Heller says. “People know they don’t work anywhere for 20 years any longer. You don’t want a temporary job? Every job is tem-porary. What you’re fi nding now is people say-ing, ‘I don’t want a permanent job.’ They love working on an assignment for six months, then getting to go do another one. The whole dynamic has shifted. Companies have started to see it as well.”

“CRG enables such a career by providing a generous benefi ts package for not only their internal employees but also all their contract employees, with access for everyone includ-ing $12-an-hour workers, we off er full medical, dental, disability and 401K options for all their employees and consultants.” Gold says.

“We make money by treating our people like gold,” Sessoms says. “We want to make sure we are diff erent. I fully understand the bad reputation our industry gets. What you hear from candidates is, ‘They just want to get my butt in a seat and get billing.’ The culture I want to have is, ‘Treat them the way you want to be treated.’”

On the permanent-placement side, the fi rm diff erentiates itself by fi nding candidates through networking rather than on job boards. “I’ve been in this market for 20 years,” Heller says. “I’m not going to go to the job board to fi nd your next candidate. I’ll call CFOs to see who is looking and fi nd a referral candidate.”

“We have a referral bonus plan that is sec-ond to none, with referral fees ranging from $250 to $2,500 by just providing a name and contact information,” Militello contributes. “This type of plan helps us grow organically and build a solid foundation for our future growth and turn candidates into long-term clients.”

41


The Synergies of CRG“People First” is No. 1 on CRG’s list of val-

ues, as it is core to the combination of the fi rms itself. The component fi rms had worked alongside each other, respecting each other’s work and ethics.

Sessoms started CRG with a partner in 1994, after a friend in the business told him that he thought Sessoms was perfect for the work. “He called and said, ‘I do a job every day that you were born to do,’” recalls Sessoms, who quit his job with Gov. Jim Martin and joined a staffing service. “And I’ve never looked back.”

Sessoms, who worked in his father’s plumbing and heating company from child-hood, aimed to apply the family fi rm’s values to his company.

“I do have a very strong work ethic,” he says, “and I appreciate a good team of people. Together, we wanted to make CRG the fairest place you could ever come to work.”

Heller, who had spent seven years as a securities broker, moved in 1998 to the staff -ing industry, “I started like a lot of people in a sales role and recruiting role for a large na-tional fi rm,” says Heller, who quickly rose to manager in the Washington, D.C. area and was eventually transferred to Charlotte.

Heller ended up starting his own search fi rm with a partner, which they successful-ly grew and sold to a national fi rm. In 2013, Heller and his partner were talking about starting a new staffi ng company with a diff er-ent approach.

“Instead of starting it from scratch, we wanted to raise private funds, then look for private equity to bring together a couple of diff erent staffi ng fi rms,” he says, “with a goal of starting as a $10 million to $15 million company.”

That’s when Heller approached Sessoms, whose 19-year-old $15 million ComputerNet Resource Group, specializing in information technology, had long-established enterprise relationships.

Heller also talked to a former competitor, Edmund Walker, who started W2 Financial with Dann Wall in 2002, and Christiaan Militello and Dianne Gold, owners of 18-year-old PCR, an IT staffi ng fi rm.

“The principals of the companies knew each other and had competed against each other in some form or fashion,” Heller ex-plains. “I wanted to beat W2 when I compet-ed against them, but I respected them. I knew

The mix of permanent and contract place-ments safeguards CRG from economic swings.

“When the economy is good, they’ll hire more permanent, so our permanent busi-ness will go up,” Heller explains. “When the economy gets soft, they’ll bring on temporar-ies because they have to get the work done. If you structure your business correctly, you can make money in both markets.”

These days, the pendulum that had swung far toward temporaries during the recession is at an equilibrium on its way to a tighter market.

“As we came through 2010 and 2011, the abundance of candidates was great because of the economy,” Heller continues. “Right now, I think it’s ideal. It’s been almost perfect for the last year. I think what we’re going to see going into 2016 through 2017 is a tight talent mar-ket. When times were tough, even people who didn’t like their job wouldn’t leave their job. Things kind of go stagnant.

“I remember telling my clients: I promise you, when this economy starts turning for the positive, you need to pick out which employ-ees you want to keep. Most people want to change. They think a change will help them. You’d better identify the employees you want to keep and you’d better go love on them be-fore it gets too good.”

“We make money by treating our people like gold. I fully understand the bad reputation our industry gets. What you hear from candidates is, ‘They just want to get my butt in a seat and get billing.’ The culture I want to have is ‘treat them the way you want to be treated.’”


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in Charlotte. Team Créatif USA, located uptown in the Carillon Building at 227 W. Trade Street, brings with it a powerhouse of branding and package design from working with some of the world’s leading brands.

“The agency was founded in 1986 by Sylvia Vitale Rotta and Nick Craig, two designers who met in Paris, France,” explains Team Créatif USA CEO Attila Akat. “The company’s fi rst major brand was Dannon, the yogurt company, and as Sylvia and Nick grew the busi-ness, the pet care division of Mars joined our family of clients.”

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[bizprofi le] by zenda douglas

It all started with a phone call from urologist Todd Cohen to his former colleague, Michael Cram. That, in turn, led them to host a meeting with several other urologists having practices in the Carolinas. Gathered around a platter of sandwiches and a batch of fresh ideas, the group spent three to four hours discussing the feasibility of creating a new, combined practice group.

Then, the serious work began. It took a year of research, legal strategy and require-ments, vetting background and compliance records, contract negotiations, asset acquisition, real estate assessment, licensure and privilege applications, human resources development and a new Medicare identifi cation number, to combine 31 physicians and 200+ employees under one group name with 13 urology centers—Carolina Urology Partners, PLLC. The newly formed entity was offi cial as of March 1, 2011.

The ambitious merger of seven independent practices, now called divisions, extends Carolina Urology Partners’ footprint across seven counties in the Charlotte region and makes it the eighth largest urology group in the country.

“We cover a very large swath of the region,” says Cram, co-CEO for the group. “Between the seven divisions, we take care of about a quarter of a million patients.”

“One of the things we want to communicate to our patients is that the long-standing relationships they’ve had with their physicians and their community won’t be changing,” says Cohen, sharing CEO responsibilities with Cram. “We have different scrubs on and a different sign on the door, but none of the doctors from the practices are changing as a result of this merger.”

Combined Benefi tsThe compelling reason for a merger of this kind is the rapidly changing

medical environment towards protocol care; that is, standardization. Protocol care requires a certain level of sophistication that is diffi cult to provide in a smaller environment.

“Protocol care provides the best quality and makes sure nothing falls through the cracks,” says Cohen. Most of the established protocols for urol-ogy are designed by the American Urological Association.

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BOTH WORLDSCarolina Urology Partners Wraps Its Offices Around the Community

The Best ofAll Seven

“We cover a very large swath of the region. Between the seven

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million patients.”~Michael R. Cram

M.D.

C harlotte seems like the perfect � t for new city manager Ron Carlee. He spent over three decades in the Washington, D.C., suburb of Arlington, Virginia, but even though he’s been on the job here in Charlotte for just a short time, the Birmingham, Alabama, native already feels right at home.

“I’m de� nitely a southern boy, there’s no question about that,” he says with a big grin. “The day we were unpacking, Interim City Manager Julie Burch dropped by with a bottle of champagne. That was a sure sign I was back in the South, because nobody in Washington ‘drops by’ to see anybody, anywhere, anytime. That really told me that I was out of Washington.”

Carlee says he stumbled onto the Charlotte opportunity almost by accident. He was working as chief operating o� cer of the International City/County Management Association (ICMA), but had served as Arlington County manager from 2001 to 2009. In the fall of 2012, he ran into an old friend who happened to work for a search � rm that was competing for the contract for the Charlotte city manager search.

“I was very happy at ICMA and wasn’t job hunting, but I did miss city man-agement a little,” Carlee admits. “The Charlotte job pro� le had my name all over it. If I were writing a pro� le for myself, I wouldn’t have changed a word. It even said that experience as a chief operating o� cer in the private sector would be helpful. When I sent it to a couple of my references, they read it and said, ‘This is your job.’”

I’m de� nitely a southern boy, there’s no question about that. � e day we were unpacking, Interim City Manager Julie Burch dropped by with a bottle of champagne. � at was a sure sign I was back in the South, because nobody in Washington ‘drops by’ to see anybody, anywhere, anytime. � at really told me that I was out of Washington.”

Ron CarleeCity ManagerCity of Charlotte

A Southern GENTLEMAN

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Charlotte’s New City Manager Carlee is Well-Suited to the Job

by jim froneberger

greatercharlottebiz.com | may 2013

17

july 2013 | greatercharlottebiz.com greatercharlottebiz.com | july 2013

23

Peter A. PappasFounder and PresidentPappas Properties, LLC

When you listen to Charlotte developer Peter A. Pappas talk, it doesn’t take long to understand why he’s been so successful in the Charlotte real estate market. He absolutely loves what he does.

“I really enjoy real estate,” beams Pappas. “It’s not just my career. It’s my hobby and it’s my passion. I don’t feel like I’m going to work. I’m just going to do something I love doing every day.”

Over the last 25 years, Pappas has been at the center of some of the most transformative real estate projects in the Charlotte region—Phillips Place, Birkdale Village, Metropolitan, and now Sharon Square—all innovative developments that have changed the way area residents live, work, dine and shop.

Guided by two of the most influential real estate developers in Charlotte history—Johnny Harris and Smoky Bissell—Pappas learned the trade from the best and has continued to expand the boundar-ies with his own firm, Pappas Properties, and a new venture announced in May, Terwilliger Pappas Multifamily Partners.

Pappas Properties’ Vision Creates Extraordinary Value

COMMUNITY

“Our vision at Pappas Properties is to create places and build communities that add value to the cities that we work in. We’ve always said that any project that we undertake would need to check that box or we wouldn’t do it.”

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building &PLACEMAKING

by jim froneberger

SHARON SQUARE

may 2013 | greatercharlottebiz.com

38

greatercharlottebiz.com | may 2013

by zenda douglas

Each time Mel Graham passes through the gates at The Club at Longview, he is struck by the natural beauty of the land—the rolling topography of old trees, natural streams and Six-Mile Creek, along with natural land preserves.

“God gave us a wonderful canvas to work with,” says Graham, the founding partner and visionary of The Club at Longview. And what a masterpiece he and his partners have created.

The Club at Longview is situated in a 500-acre private gated residential community south of Charlotte with the region’s only Jack Nicklaus Signature Golf Course. The Club is consis-tently ranked one of the top 20 private clubs in North Carolina by Golf Digest ‘Best in State.’

Graham began design and construction of the Club in 2000 and completed it in 2003. He owns it in partnership with James Little, formerly an investment banker, and Bruce Anderson and Pat Welsh of Welsh, Carson, Anderson & Stowe.

Together, the partners have built a community that promotes an atmosphere of relax-ation and exclusivity with uncompromised conveniences and amenities for members to enjoy, with respect for the highest quality design concepts and land preservation.

RevisitedThe Scottish Muir

The Club at Longview is situated in a 500-acre private gated

residential community south of Charlotte with the region’s only

Jack Nicklaus Signature Golf Course. The Club is consistently ranked one of the top 20 private

clubs in North Carolina by Golf Digest ‘Best in State.’

the Club at longview is a vision

unCompRomised

The Club at Longview

The Club at Longview

Your Business by barbara fagan According to the United Nations, 1.2 billion people, or one-� fth of the world’s population, live in areas of water scarcity. It’s a prob-

lem that a� ects every continent and is ex-pected to be an issue for many societies in coming decades.

In the United States, drought levels from moderate to exceptional stretch from California to Texas; the Colorado River is starting to run dry in places; and Lake Mead, which currently supplies water for 22 mil-lion people, may be a thing of the past by 2021.

When most people think of water scarci-ties, they think of water for household use: water for drinking, showering, washing clothes or watering lawns. What many don’t realize is the essential part water plays in their local economy.

Water as an Economic DriverWater is an economic driver. The agri-

cultural sector most obviously depends on water availability, but so do many

other industries. Water supply/demand imbalances also af-

fect decisions on corporate locations and expansions. In other words, an ade-quate water supply sup-ports a region’s economic

growth.For the same reasons, a

growing region requires more water. And Charlotte is growing.

With a projected annual population growth rate of 1.98 percent and an annual job growth rate of 3.1 percent, the Charlotte Metro Area (including parts of Upstate South Carolina) ranked ninth in Forbes 2015 list of America’s Fastest-Growing Cities.

Water for the people and businesses in the Charlotte Metro Area is supplied by the Catawba-Wateree River Basin extend-ing from the headwaters of the Catawba on the slopes of Grandfather Mountain near Blowing Rock, N.C., to the Wateree River's

con� uence with the Congaree River east

of Columbia, S.C.The Catawba

and the Wateree Rivers are essential-ly one 224-mile river

that begins in the Blue Ridge

Mountains of western North Carolina and � ows through the Charlotte metropolitan area into Lake Wateree in South Carolina, 30 miles northeast of Columbia. The name of the river changes to the Wateree River in Lake Wateree and eventually joins with the Congaree River upstream of Lake Marion.

There are 11 major lakes or reservoirs in the basin and the dams that form these lakes have a major impact on the � ow of the river. Largest of these in terms of usable stor-age capacity are Lake Norman, Lake James and Lake Wateree which provide recreation, water and hydroelectric power for the area. Duke Energy is the managing authority for the reservoirs and 13 hydropower stations (Catawba-Wateree Hydro Project) under a li-cense from the Federal Energy Regulatory Commission (FERC).

The licensing process de� nes how the basin will be managed over the license term, which could be up to 50 years. During Duke Energy’s re-licensing process with FERC (the license, issued in 1958, expired in 2008), a water supply study uncovered a critical problem. Namely that, without in-tervention, given the current rate of growth in this region, the water demands on the Catawba River would reach maximum ca-pacity by the year 2048.

It was in conjunction with the re-li-censing process, in concern for this situ-ation, that the Catawba-Wateree Water Management Group (CWWMG) was formed in 2007.

Catawba-Wateree Water ManagementThe CWWMG is a 501(c)(3) non-prof-

it formed to identify, fund and manage projects that will enhance the ca-pabilities of the Catawba-Wateree River to provide water resources for human needs such as water supply, power production, industry, agricul-ture and commerce, while maintaining the river’s ecological health.

The CWWMG has 19 members; one member representing each of the 18 public water systems in North and South Carolina which rely on the 4,750-square mile river basin, and one member representing the utility company Duke Energy Carolinas, LLC, which built the reservoir system begin-ning in the early 1900s through the 1960s.

The CWWMG Cooperatively Works to Ensure Our Water Supply Meets Future Demands

Without intervention, given the current rate of growth in this region, the water demands on the Catawba River would reach maximum capacity

by the year 2048.

march/april 2015 | greatercharlottebiz.com

11

greatercharlottebiz.com | march/april 2015

water availability, but so do many other industries. Water supply/

demand imbalances also af-

growing region requires more water. And Charlotte is growing.

WaterWise

thirst for growthrequiresmanageduse

Congaree River east of Columbia, S.C.

the Blue Ridge

greatercharlottebiz.com |

by the year 2048.

july 2013 | greatercharlottebiz.com

16

With the issue of jobs reigning supreme in the minds of business, government and the American family, Charlotte Works has just one thing on its agenda—getting qualified people into suitable jobs. To accomplish this, however, means spending a great deal of time and effort working and collaborating with businesses and organizations,

municipal governments and schools and colleges to develop a globally competitive work-force for employers in Charlotte and Mecklenburg County.

“We’ve just celebrated our first anniversary rebranded as Charlotte Works,” announces Steve Partridge, president and CEO of Charlotte’s newest one-stop, which is a consolida-tion of former offices.

The 501(c)(3) organization was established in 1998 as the Charlotte-Mecklenburg Workforce Development Board with the passage of the federal Workforce Investment Act. As in other states, federal funds are provided to the governor’s office and channeled through the Department of Commerce and down to local levels. In 2012, Charlotte’s Workforce Board was rebranded as Charlotte Works.

“Our goal is to get people out of unemployment and back to work,” says Partridge. “The rebranding was needed to improve employment-related services for both employ-ers and potential employees.”

“Previously, we were a much smaller organization and subcontracted out most of our services,” explains Partridge. “We realized that to carry out our mission to upgrade and expand services, we were going to have to raise the bar on the qualifications of the people hired to deliver these services.”

Now, with 24 professional employees, Charlotte Works is directly engaged in a broad array of customized services including coaching, training and networking—all targeted to the ever-changing needs of the Charlotte-area employers.

educateempower

engage

Focuses on the Development oF a Globally competitive

WorkForce For charlotte area

employers

by zenda douglas

Steve PatridgePresident and CEOCharlotte Works

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With the issue of jobs reigning supreme in

the minds of business, government and the

american family, charlotte Works has just one thing on its agenda—getting

qualified people into suitable jobs.

greatercharlottebiz.com | september 2012

31WWhat does a profitable, high growth company do when it sees an exciting new opportunity—whether it be a major new product initiative, a geographic expansion, or a major acquisition—but lacks the capital required to move rapidly?

It might approach Richard Maclean, Andrew Lindner and their experienced team at Charlotte-based Frontier Capital, a 13-year-old growth equity firm formed in 1999.

Growth equity firms such as Frontier provide companies with the capital they need to seize such opportunities. Similar to venture capital firms, but focusing on established companies rather than startups, growth equity firms receive investments from high net worth individuals and institutional investors and then redeploy that capital in profitable, high growth companies. The equity firm and their investors share in the profits as those companies grow and prosper.

Show me the Money!

september 2012 | greatercharlottebiz.com

30

(l to r)Michael RamichPartnerAndrew LindnerManaging PartnerJoel LanikPartnerRichard Maclean(not pictured)Managing PartnerFrontier Capital

Feni

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Frontier Capital Partners with High Growth Business Services

by jim froneberger

Growth

Equity

march 2013 | greatercharlottebiz.com

8

greatercharlottebiz.com | march 2013

9

by pete prunkl

Edenurban

■ ■ ■

mericans invented the solar cell, wind turbine and lithium battery. Not a bad start in the highly competitive, alternative energy marketplace. While the U.S. earns points for

genius, our impact on society has been tepid at best. For example: solar power. It is a free, renewable, clean and seemingly inexhaustible resource. Why isn’t the sun America’s

primary source of power?The poet T.S. Eliot knew the answer. “Between the idea and the reality, between

the motion and the act,” he said, “there falls a shadow.”An enormous portion of the solar shadow is cost. A few years ago real estate agent Binnie Orrell inves-

tigated running his Charlotte home entirely on solar power. He received an estimate of $25,000 to install a single photovoltaic (PV) solar panel on the roof. “It was absurd,” comments Orrell.

“Prices for photovoltaic systems that generate electricity have dropped dramatically in the past few years,” says solar energy engineer Tommy Cleveland of the North Carolina Solar Center. “A quote today would be half of what it was three to four years ago.”

Part of the reason for the price reduction is the Chinese government. When they decided to subsidize solar panel production, other manufacturers like Bosch Solar in Mooresville, quickly dropped their prices.

Tommy Cleveland adds another solar fact of life: “It costs more to retrofit a house for solar than new construction.”

UNC Charlotte’s Solar Decathlon House Combines the Best of Education and Industry for Sustainability

UNC Charlotte’s “Urban Eden” house incorporates truly revolutionary approaches to sustainable

design and construction, including the choice of building material (geopolymer cement concrete), an innovative passive cooling and heating system integrated into the walls and ceiling of the house, and responsive technology that allows the house and its inhabitants to adapt to changing environmental conditions.

Envisioned as an urban infill project for empty nesters or young professionals, the house design is defined by a strong connection between indoor and outdoor living areas; even in an urban context, the outdoor living area allows one to privately enjoy the outdoors. The UNC Charlotte team began work on the design in October 2011, broke ground in February 2013, and will complete construction over the summer before transporting the house to California in September 2013. The competition takes place October 3-13, 2013.

by paul matthews

GLOBALOpportunitiesGrounded in Ethics

“In business, the greatest rewards come to those who can adapt to the changing dynamics of a global economy without losing sight of their core values. These are the ethical

entrepreneurs—innovators and leaders who understand that maximizing profi ts and maintaining integrity

aren’t mutually exclusive,” maintains Dr. Anthony Negbenebor, dean of one of North Carolina’s rising star schools and insightful thought leader.

That is how success is defi ned at the Godbold School of Business at Gardner-Webb University, a private Christian school with its main campus in Boiling Springs, N.C., and satellite campus in Charlotte. The school’s renowned graduate programs—including its online M.B.A., ranked No. 1 in the U.S. in 2012 (U.S. News & World Report) and No. 9 worldwide (BusinessMBA.org)—are led by seasoned practitioners from around the world.

Gardner-Webb University'sGodbold School of Business:Where Bright Futures Ignite

Dr. Anthony NegbeneborDeanGardner-Webb University Godbold School of Business

Boiling Springs, N.C., Founding Campus

IGNITE YOUR future

The Gardner-Webb Brand

39

greatercharlottebiz.com | march/april 2015march/april 2015 | greatercharlottebiz.com

38

› Greatyour marketing materials

enjoyable to read.

› Greatmessage clearly and impressively

at a time when every moment counts.

including fl yers,

ith the issue of jobs reigning supreme in the minds of business, government and the American family, Charlotte Works has just one thing on its agenda—getting qualified people into suitable jobs. To accomplish this, however, means spending a great deal of time and effort working and collaborating with businesses and organizations,

municipal governments and schools and colleges to develop a globally competitive work-force for employers in Charlotte and Mecklenburg County.

“We’ve just celebrated our first anniversary rebranded as Charlotte Works,” announces Steve Partridge, president and CEO of Charlotte’s newest one-stop, which is a consolida-

The 501(c)(3) organization was established in 1998 as the Charlotte-Mecklenburg Workforce Development Board with the passage of the federal Workforce Investment Act. As in other states, federal funds are provided to the governor’s office and channeled through the Department of Commerce and down to local levels. In 2012, Charlotte’s Workforce Board was rebranded as Charlotte Works.

“Our goal is to get people out of unemployment and back to work,” says Partridge. “The rebranding was needed to improve employment-related services for both employ-ers and potential employees.”

“Previously, we were a much smaller organization and subcontracted out most of our services,” explains Partridge. “We realized that to carry out our mission to upgrade and expand services, we were going to have to raise the bar on the qualifications of the people hired to deliver these services.”

Now, with 24 professional employees, Charlotte Works is directly engaged in a broad array of customized services including coaching, training and networking—all targeted to the ever-changing needs of the Charlotte-area employers.

educateempower

engage

by zenda douglas

Steve PatridgePresident and CEOCharlotte Works

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With the issue of jobs reigning supreme in

the minds of business, government and the

american family, charlotte Works has just one thing on its agenda—getting

qualified people into suitable jobs.

greatercharlottebiz.com | september 2012

31WWhat does a profitable, high growth company do when it sees an exciting new WWhat does a profitable, high growth company do when it sees an exciting new Wopportunity—whether it be a major new product initiative, a geographic expansion, Wopportunity—whether it be a major new product initiative, a geographic expansion, Wor a major acquisition—but lacks the capital required to move rapidly?Wor a major acquisition—but lacks the capital required to move rapidly?WIt might approach Richard Maclean, Andrew Lindner and their experienced team WIt might approach Richard Maclean, Andrew Lindner and their experienced team Wat Charlotte-based Frontier Capital, a 13-year-old growth equity firm formed in 1999.Wat Charlotte-based Frontier Capital, a 13-year-old growth equity firm formed in 1999.WGrowth equity firms such as Frontier provide companies with the capital they WGrowth equity firms such as Frontier provide companies with the capital they Wneed to seize such opportunities. Similar to venture capital firms, but focusing on Wneed to seize such opportunities. Similar to venture capital firms, but focusing on Westablished companies rather than startups, growth equity firms receive investments Westablished companies rather than startups, growth equity firms receive investments Wfrom high net worth individuals and institutional investors and then redeploy that Wfrom high net worth individuals and institutional investors and then redeploy that Wcapital in profitable, high growth companies. The equity firm and their investors Wcapital in profitable, high growth companies. The equity firm and their investors Wshare in the profits as those companies grow and prosper.Wshare in the profits as those companies grow and prosper.WShow me the Money!

(l to r)Michael RamichPartnerAndrew LindnerManaging PartnerJoel LanikPartnerRichard Maclean(not pictured)Managing PartnerFrontier Capital

Frontier Capital Partners with High Growth Business Services

by jim froneberger

Growth

Equity

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them and knew they were good guys; we had always stayed in touch with each other. We wanted to work together.”

At first Sessoms wasn’t interested, but eventually Heller convinced him to come to a meeting that was the beginning of molding these great companies together. As a matter of fact, it was Sessoms who suggested using CRG as the foundation for the combined en-tity, rather than seeking private money.

“The whole thing changed at that point,” Heller recalls. Sessoms remained CEO of the combined entities and the new CRG was born.

“As far as making this thing actually hap-pen, that’s Tim,” Heller says forthrightly.

With his extensive background in com-bining companies, Heller was put in charge of synthesizing the partners’ fi rms as well as merger and acquisition work.

“The hardest part has been integrating the owners,” Heller quips. “We’re all used to doing things our own way. But seriously, we’re ba-sically integrating three brands to have the same CRM, procedures and policies. You’ve got to keep your front offi ce driving the busi-ness while the back offi ce integrates people and practices from three companies.

Even as the details were ironed out, the

total value of the company’s Charlotte op-erations grew from $7 million to $10 million by the end of 2014, with a total of $24 million counting the Triad/ Triangle operation.

“I look back, and I’m so blessed it hap-pened,” Heller says. “The No. 1 word I can tell you is ‘humility.’ I said, ‘We’ll make this suc-cessful if we can stuff our egos in our pock-ets.’ The owners had to swallow their pride and say, ‘I know this is how I used to do it, but what’s the best way to do it together?’”

The fi rm leverages its location and long ex-perience in Charlotte to maintain a healthy, di-versifi ed client base.

“Everyone thinks about Charlotte as being the banking capital—which it is—but we’re able to grow and drive a business without doing any banking because of where it’s located—the airport and Fortune 500 headquarters here,” Walker comments. “Candidates from all over the country want to come here. It’s such a de-sirable place to be for all ages.

“This is a great market for our business. It is much easier to recruit to North Carolina than to a lot of other places. Whether you call an IT professional, an HR director, a CPA or an MBA—working in Detroit, Buffalo or Columbus—and ask if they want to come work

in North Carolina, the answer is always, “Yes!”There is no doubt CRG is well-positioned

for unprecedented long-term growth with just the right combination of owners, manage-ment and key employees in place.

CRG Workforce, Inc. dbaCRG9335 Harris Corners Pkwy., Ste. 250Charlotte, N.C. 28269Phone: 704-665-9555Principals: Tim Sessoms, President and CEO; Jason Heller, Sr. V.P. Mergers & Acquisitions and Sales; Edmund Walker, V.P. Temporary Operations; Christiaan Militello, V.P. IT ConsultingDianne Gold, Director of HROffi ces: Headquartered in Greensboro/High Point, N.C.; Charlotte offi ceEmployees: More than 300In Business: Founded 1994Business: Recruiting and consulting services company focused in the areas of information technology, accounting and fi nance, human resources and administration and search.www.getCRG.com

“In corporate America, there is no more security. People know they don’t work anywhere for 20 years any longer. You don’t want a temporary job? Every job is temporary. What you’re fi nding now is people saying, ‘I don’t want a permanent job.’ They love working on an assignment for six months, then getting to go do another one.”

43


Gene Stowe is a Greater Charlotte Biz freelance writer.Some images provided by the company.

[publisher’spost] OF INTEREST: Promoting Thought Leadership Across the Carolinas

John P. GallesPublisher

a local level.”They found substantial variation

in intergenerational mobility across geographic areas within the U.S., although upward mobility is especially low across the South. Most important, their fi ndings confi rm that Charlotte is the worst big city for climbing out of poverty in the nation!

Charlotte’s ranking is especially surprising in light of the national and international accolades the city has received over the recent years as one of the most entrepreneurial, fastest growing, best places for families to live, U.S. cities attracting the most families , most livable cities for people 35 and younger, cities where African-Americans are doing the best economically, best metro areas for STEM professionals, best performing cities, and—ironically—one of the world’s most competitive cities.

In reaction to this study showing that upward mobility for children in poverty is more diffi cult in Charlotte than any of the country’s 50 largest cities, the city formed its own special task force to investigate why, in the words of one member, “If you’re born

poor in Charlotte, you’re mostly likely to remain poor—more so here than anywhere else in the country.”

The upward mobility study of Cha rlotte-

Mecklenburg’s “Opportunity Landscape” was released this spring, presented by UNCC’s Metropolitan Studies and Extended Academic Programs and prepared by UNC Charlotte’s Urban Land Institute with support from Foundation for The Carolinas.

Here are a few of the findings or highlights from the Charlotte-Mecklenburg study: 38 percent of households with children are single parent; Segregation is evident in neighborhoods, by race and class; One fi fth of the households made more than half the income; Many households would fall into poverty after 3 months without income; Diff erences in mobility emerge when chil-dren are young (based upon reading skills); Inter-racial trust has remained fl at.

The task force recog-nized Charlotte’s ranking as a clear challenge and stressed that overcoming impoverishment needs to be addressed through long-term community-wide solutions that ad-

dress the systemic nature of this highly complex issue.

T hat ou r c it y c a n ga r ner suc h outsta nd i ng recog n ition nationa l ly and internationally, yet cultivate such a dismal landscape of opportunity, particularly for those most in need, is indeed food for thought. We cannot truly advance our community if we are leaving people behind in that process. Let’s get our competitive juices f lowing to f loat everyone’s boat!.

The American Dream is a nation-al ethos of the United States, the set of ideals (Democracy, Rights, Liberty, Opportunity, and

Equality) in which freedom includes the op-portunity for prosperity and success, and an upward social mobility for the family and children, achieved through hard work in a society with few barriers.

It is a basic part of our fabric, rooted in the Declaration of Independence proclaiming all men created equal with the right to life, liberty and the pursuit of happiness.

Those ideals have recently been put to the test by a pair of economists at Harvard, known for their work on income mobility. They have released a report on factors

across the nation within communities correlating with income mobility: The Impacts of Neighborhoods o n Inte r g e n e ra t io n al Mobility. Their findings took many by surprise.

Across the country, the researchers found fi ve factors associated with strong upward mobility: less segregation by income

and race, lower levels of income inequality, better schools, lower rates of violent crime, and a larger share of two-parent households.

In general, the eff ects of place are sharper for boys than for girls, and for lower-income children than for rich.

“The broader lesson of our analysis,” Raj Chetty and Nathaniel Hendren write, “is that social mobility should be tackled at

UPWARD MOBILITY? NOT BY A LONG SHOTCHARLOTTE IS THE NATION’S WORST BIG CITY FOR CLIMBING OUT OF POVERTY

Please feel free to contact me at 704-676-5850 x102 or jgalles@

greatercharlottebiz.com.

The Equality of Opportunity

Project

A Charlotte-Mecklenburg Perspective

NYT: Best and Worst Places to

Grow UpWHAT A CHILDHOOD IN MECKLENBURG COUNTY DOES TO A FUTURE INCOME


44

http://www.equality-of-opportunity.org/

http://www.thoughtbox.org/sites/default/files/Leading%20On%20Opportunity%20III_Charlotte%20Mecklenburg%20Opportunity%20Landscape.pdf

http://www.nytimes.com/interactive/2015/05/03/upshot/the-best-and-worst-places-to-grow-up-how-your-area-compares.html?_r=1

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Thank Youto all of our members!

Don’t miss our 2015 speakers. Join Today!

Membership has its rewardsyear after year at Hood Hargett Breakfast Club!

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Friday, January 9thTroy Vincent

Former NFL All Pro & Current NFL Executive VP of Football

Operations

Friday, September 11th Elizabeth Smart

Abduction survivor and Founder of the Elizabeth

Smart Foundation

Friday, March 6thJim Morgan

President & Chief Executive Officer Krispy Kreme

Thursday, April 2Woody Durham

“Voice of the Tar Heels”, former play-by-play radio announcer at University of

North Carolina at Chapel Hill

Friday, May 15thNick Faldo & Ian Baker-Finch

CBS Sports Golf Analysts

Friday, February 13thJim Knight

Culture, Branding and Customer Service

Catalyst

Friday, October 9th Jonathan Karl

ABC News’ Chief White House Correspondent

Friday, November 13th Michael Leiter

Former Directorof the National

Counterterrorism Center

1st AmericardAdams Outdoor AdvertisingAmerican Red CrossAmerican Security MortgageAndrew RobyAVP Nationwide ProductionsBethlehem CenterBlueCross BlueShield of North CarolinaBoatsman Gillmore WagnerBoingo GraphicsBusiness WiseCarolinas HealthCare SystemCarolina PanthersCharlotte HornetsCharlotte KnightsCharlotte ObserverCharlotte Regional PartnershipClassroom CentralCOGNITIONCPI Security SystemsCrisis Assistance MinistryDiamonds Direct SouthparkDuke EnergyFirst Tee of CharlotteGreater Charlotte BizGreater Charlotte HTAHampton Inn & Suites at Phillips PlaceHilldrup MoversHood Hargett & AssociatesHumane Society of CharlotteIke BeharJamie Kimble Foundation for CourageKeffer HyundaiKillingsworth EnvironmentalL.A. Management Company, LLCLarner’s Office FurnitureLittler Mendelson, P.C.March Forth with Hope FoundationNewDominion BankPalm RestaurantPiedmont Natural GasPremier Sotheby’s International RealtyRed Rover CommunicationsRonald McDonald House of CharlotteRose Chauffeured Transportation Ltd.Second Harvest Food Bank of MetrolinaSee The MatrixSimile Imaging SolutionsTime Warner Cable Business ClassUNC Charlotte Extended Academic ProgramsWBT Radio 1110-AMWells Fargo Advisors-The Golden GroupWTVI-PBS CharlotteYMCA of Greater Charlotte

Greater Charlotte Biz 2015.11-12 November-December 2015

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Transcript of Greater Charlotte Biz 2015.11-12 November-December 2015